Source: Yahoo! News —
On the surface, it seems like the real estate industry is struggling. It’s easy to see why. The industry, for instance, was ranked as the S&P 500’s third worst-performing sector in 2022. But appearances can be misleading: the real estate business is a lot stronger in reality, according to Todd Henderson, Co-Head of Global Real Estate DWS Group.
Henderson contends that the market broadly, from rentals to home buyers, is doing well with one exception: commercial office buildings.
“The underlying fundamentals of real estate are quite strong,” Henderson told Yahoo Finance. (Video above)
The real estate market saw mixed reviews throughout 2022. In the first half of the year, homeowners benefitted from the highest level of growth recorded in twenty years — U.S. year-over-year home price growth reached a tad above 20 % in April 2022, according to CoreLogic’s Monthly Home Price Index. But activity slowed by some measures as mortgage rates increased. In November 2022, home prices nationwide, grew 8.6% year over year compared with November 2021, the lowest rise in 2 years.
Meanwhile, the total value of U.S. homes decreased 4.5% from a record high of $47.7 trillion in June to $45.3 trillion at the end of 2022, according to a recent report from the real-estate brokerage Redfin — the largest June-to-December percentage decline since 2008. And, the S&P CoreLogic Case-Shiller U.S. National Home Price index fell 0.8% in December compared to the previous month, according to data released earlier this week.
