The real estate sector (XLRE) has been underperforming as uncertainty surrounding a potential rate cut by the Federal Reserve weighs on the industry. Fundrise CEO and co-founder Ben Miller and CenterSquare senior investment strategist Uma Morariity join Market Domination to provide insight into the current state of the U.S. housing market.
Moriarity pointed to shelter inflation as a key component of the continued high inflation data, acknowledging that it is a “lagging indicator.” However, she noted that “real-time shelter costs” are lower than what is reported in inflation statistics, suggesting that the fight against inflation is “heading in the right direction.” Moriarity said rate cuts remain on the table, and she believes the current high interest rate environment “presents a very good opportunity for investors today” in real estate and homebuilding stocks.
Mr. Miller echoes Mr. Moriarity's opinion, emphasizing that “real estate moves inversely to interest rates.'' Although interest rates have peaked, he believes there is “more room for them to fall.” Miller expects lower interest rates to be a “huge tailwind for real estate.” He also noted that the real estate sector is starting to show signs of normalization, expressing optimism that the sector has “hit bottom” and could present a lucrative buying opportunity for investors. Indicated.
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This post was written by angel smith
