Despite the fact that homebuilder and real estate-related exchange traded funds (ETFs) have been posting decent numbers over the last few days, you can’t help but wonder if the latest round of bad news is going to hurt them a little.
The news this morning was that sales of existing home sales fell in December by the largest amount in 25 years, reports Martin Crutsinger for the Associated Press. The median price for a single-family home dropped by 1.8%, down to $217,000 – the first annual price decline on records going back to 1968. An economist said that it was possible that the country hasn’t seen a decline in prices for an entire year since the Great Depression.
What will this mean for housing and real estate ETFs? As with all else, only time will tell. Among the housing and real estate ETFs are the SPDR S&P Homebuilders (XHB) and the iShares Dow Jones US Real Estate (IYR).
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.