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Naughton referred to this in the REIT’s recent earnings call (per a Seeking Alpha transcript): Apartment deliveries are expected to peak nationally in 2016 and 2017 as permitting for new projects has.
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US consumers are less optimistic and given they and the housing market will have to support GDP, jobs, and housing demand, there is a real threat of a housing crash. Oil prices are rising and there’s no expectation IRAN will change its ways so sanctions will be lifted on their oil output. Bloomberg just reported auto sales dropped in March.
· Housing Sales slumped 8.5% from one year ago, the lowest sales since 2015. Prices still rose another 2.8% to a median of $247,500 nationwide. The real story was the drop in lower priced homes as depicted in this graphic from NAR. With low mortgage rates, it’s believed sales will once again grow. 60,000 more homes were on the market.
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Facing continued slow and steady growth in US GDP heightened global uncertainty and lower yield expectations institutions don’t anticipate tapping the brakes on investment any time. GlobeSt An ALM.