Some real estate exchange traded funds (ETFs) are down slightly in early trading after the latest round of bad news from the sector.
Home prices in the United States posted their sharpest first-quarter drop since the government began tracking the data 17 years ago, reports Alan Zibel for the Associated Press.
Prices were down 3.1% in the first quarter, compared with the same period last year. They fell 1.7% from the fourth quarter, which is the biggest quarter-to-quarter drop on record. The growing backlog of real estate inventory is to blame, and prices fell in 43 states. California and Nevada prices dropped the most, by more than 8%.
Real estate ETFs are down just a smidge, though. They’ve demonstrated the ability lately to withstand wave after wave of bad news – will that hold true for today?
- iShares Dow Jones US Real Estate (IYR), up 5.7% year-to-date
- First Trust S&P REIT (FRI), up 6.8% year-to-date
- DJ Wilshire REIT (RWR), up 7.6% year-to-date
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