REITs - Real Estate Investment Trusts - Info & Discussion: Re: For Experienced Investors Only!
- bob90245
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» bob90245 - Re: For Experienced Investors Only!
In response to For Experienced Investors Only! posted by Normxxx:I think that real estate stocks are a great leading indicator for the real estate market.
The two are an apples and oranges comparison. Unlike residential houses, REITs come in many more varieties: Apartments, Office, Shopping and Industrial to name a few. And lumping them all together may not be the best approach. I can probably argue that apartment REITs may even strengthen.
Consider that as home prices and interest rates rise, fewer renters will be able to buy a home. And as over-extended homeowners can no longer afford rising interest payments on their ARMs, they may be forced to sell their home and become renters again. Combine those two trends, and you have an increasing number of renters which will be beneficial for apartment REITs.
-- posted by bob90245
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