Some real estate exchange traded funds (ETFs) were up slightly on the news that home prices sank while sales rose.
For the first quarter, the Standard & Poor’s/Case-Shiller index showed that home prices fell 14.1% compared to the same period last year. Nationwide home prices are now at levels that haven’t been seen since the third quarter of 2004, reports J.W. Elphinstone for the Associated Press.
Tempted by the low prices, homebuyers seem to be crawling out of the woodwork. Sales rose last month for the first time in six months, reports Martin Crutsinger for the Associated Press. Even with the unexpected increase, though, sales are still at their lowest levels in 17 years. Economists believe that new home sales aren’t going to pick up anytime soon, either, since foreclosures are still flooding the market.
Some of the real estate ETFs:
- iShares Dow Jones US Real Estate (IYR), up 4.3% year-to-date
- First Trust S&P REIT (FRI), up 4.7% year-to-date
- DJ Wilshire REIT (RWR), up 6.4% year-to-date
- iShares FTSE NAREIT Real Estate 50 Index (FTY), up 4.9% year-to-date
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.