The sector real estate closes a very positive weekperforming better than the market, thanks to the confirmation of a progressive decrease in interest rates in the USA and EU, which will favor the mortgage and real estate markets.
ECB and Fed: Full steam ahead with rate cuts
The central banks maintain a policy oriented towardsmonetary accommodationalthough still highly restrictive, with rates expected to progressively decline at a more or less accelerated pace. ECB, after having made a first cut in June, she took a long summer break and is planning another surgery (always 25 points) in September. This has been confirmed by several Eurotower representatives, but this perspective is also supported by the most recent data from PMI (worsening) and slower growth of wageswhich eases inflationary pressures.
As for the Federal Reserveshould finally dissolve all reservations and proceed with the first cut in SeptemberPowell confirmed this from Jackson Hole without giving too many indications on the size and frequency of the interventions, even if the market is already betting on at least two interventions within the year.
More positive signals from the real estate market
In Italy there is a somewhat complicated real estate market that does not allow for real price growth from the game of supply and demand. From the Market Observatory created by the Land Registry in collaboration with the Revenue Agency, it emerges that there are almost more people than houses: 35.6 million homes for almost 59 million people. It follows that there is 1 house for every 1.6 inhabitants or more realistically 2 houses for every 3 inhabitants. The cities with the largest number of houses overall remain metropolises such as Milan, Rome and Turin. The average Italian house has a surface area of 118 square meters and 5.5 rooms.
From the macro front, signs of optimism are emerging for the flourishing US market. existing home sales in the United States recorded a in July increase of 1.3%, after the -5.2% reported in June: 3.95 million homes sold, more than expected.
The performance of the sector on the stock exchange
The real estate sector had a very good week at European level, where the index Stoxx 600 Real Estate reported a +3.3% on a weekly basis, bringing the performance since the beginning of the year to approximately +2%.
A better performance was achieved by Italy, where FTSE Italia All Share Real Estate Index brought home a strong increase of over 5%, also outperforming the FTSE MIB market index which gained around 4%.
Best and worst
On the Corporate front, comforting signals have arrived from the big luxury houses Toll Brotherswhich benefited from quarterly results that exceeded expectations and positive analyst ratings.
Among the real estate companies listed on Piazza Affari there were few ideas. Among the components of the sector index the best weekly performances were those of Cabinets (+4.5%), IGD (+6.7%), which continues to benefit from the new strategic plan and the promise of a dividend distribution. Negligible performances Brioschi (-0.4%), Restoration (+0.4%) and Aedes which ends with almost nothing done.
