The real estate sector ended the week rallying on the back of a series of indicators that point to a recovery in the sector, in parallel with the recovery of the mortgage market triggered by a more accommodative policy from central banks.
Rate cuts boost sector
The preliminary data of theEuro Area inflationfor the month of August, confirms a slow down growth at 2.2%, now very close to the ECB’s target, even if the core index remains further away at 2.8%. These indications have strengthened the expectation of new ECB cuts in addition to the one already discounted for the month of September.
Even the intervention of the hawk Isabel Schnabel in Estonia confirmed the prospect of 2% inflation in 2025although the executive member of the Eurotower warned that monetary policy must be careful not to act on the spur of the moment. Comments that do not seem to have disturbed the expectations of the markets.
As for the Fed, the PCE price index corea more reliable measure of inflation, recorded a positive change in 0.2% on month, in line with estimates market, and 2.6% on the year, resulting below the expected +2.7%. An indicator that seems to confirm the possibility of multiple cuts and incisors of the US rates in the next few months.
Good signals from the real estate market
A report by idealista,it reports a slight slowdown in the real estate market in August: the house prices used in Italy have registered a slight 0.2% decline, but they confirm their increase both on an annual basis (2.1%) and on a quarterly basis (1.1%).
Even from United States There have been signs of a slowdown in the US housing market, where home prices slowed in June, albeit less than analysts expected. The S&P Case-Shiller Indexwhich measures the progress of the prices in the top twenty metropolitan areas of the United States, has highlighted a 6.5% year-on-year increase more contained than the +6.9% of the previous month, but higher than the consensus +6.2%. The FHFA Index developed by the Federal Housing Finance Agency, has recorded a monthly decline of 0.1% and compares with a 0.1% increase estimated by analysts. This has also caused a decline in sales, with an index of pending home sales (purchase agreements) that recorded a decrease of 5.5% on a monthly basis.
In United Kingdominstead, Nationwide confirmed a Market growth at its highest since 2022with house prices growing by 2.4% trend.
The performance of the sector on the stock exchange
The real estate sector has had a colourless week at European level, where The Stoxx 600 Real Estate Index closed almost unchanged on a weekly basis, bringing the performance since the beginning of the year to +2.8%.
A better performance was achieved by Italy, where FTSE Italia All Share Real Estate Index brought home a 9.6% increase, also surpassing the FTSE MIB market index which gained approximately 3.2%. Since the beginning of the year the sector has recorded a -1%.
Who goes up and who goes down
Among the real estate companies listed on Pizza Affari and making up the sector index, the best performance is still that of IGDwhich scores a brilliant increase of approximately 12%, always in the wake of the growth projects envisaged in the 2025-2027 industrial plan.
Positive too Restoration (+0.8%) and Cabinets (+0.8%), while they remain weak Aedes (-1%) and Brioschi (-0.4%). Outside the basket it looks brilliant Next King (+2.6%).
