Natixis - Why is the real estate sector in trouble at a time when stock market indices are breaking records?

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Natixis

Patrick Artus

Why is the real estate sector in trouble at a time when stock market indices are breaking records?

In the United States and the euro zone: There is a residential real estate crisis ( falling construction and home sales, weak mortgage lending, etc.); Stock market indices are breaking records. How is this possible? This situation can be explained as follows: Real estate activity depends on nominal long-term interest rates, while share prices depend on real long-term interest rates; Liquidity is still very abundant, but is not financing real estate (mortgage lending is weak ), it is rather financing share purchases.

12/04/2024 1 EN

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Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

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Patrick Artus

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Why is the real estate sector in trouble at a time when stock market indices are breaking records?

FOMC Recap: Cuts delayed, not cuts denied

April Employment Report Preview

Euro area: growth accelerates and core inflation slows

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