Real Estate industry
Monitor and predict the growth prospects and potential risks of the Real Estate industry by examining the financial and macroeconomic factors affecting it and the latest Real Estate news tracked by MacroVar. Sign Up Free to get notified instantly on the latest Real Estate updates and get full access to MacroVar advanced analytics of Global Financial Markets, Economies and Financial Risk.
Click to explore the factors and the financial models used by MacroVar to analyze the Real Estate industry trend, growth prospects and risks.
Real Estate industry Markets
|US Real Estate industry||US.REALESTATE||414.15||-0.5||0||0.09338||41.0841||0.6||3.06||8.29||-0.13633|
|Europe Real Estate industry||EU.REALESTATE||842.21||0||0.75||0.58958||55.872||0.24||3.37||9.98||-0.10798|
|STOXX Asia Pacific 600 Real Estate||APAC.REALEST||287.13||0.5||0.75||0.05955||53.5123||-1.65||-1.65||2.4||-0.17875|
|Eastern Europe Real Estate||EEU.REALEST||99.95||1||0.75||1.25221||70.0597||0.03||-6.15||8.3||-0.04261|
|US Real Estate Credit Spreads||US.REALESTATE.CR||112.45||-1||-0.75||-0.96003||13.7223||0.57||0||-7.74||0.07962|
|Europe Real Estate Credit Spreads||EU.REALESTATE.CR||116.05||-0.5||-0.75||-1.0318||16.5177||-0.71||-0.13||-0.39||0.08331|
Real Estate industry News
Real Estate industry Analysis
MacroVar monitors the performance, risk, trend and momentum of the Real Estate industry by examining the stock and credit performance of major Real Estate companies across the US, Europe, Eastern Europe and Asia Pacific. Real Estate Stock performance is monitored by analyzing STOXX equity indices of major Real Estate companies while Real Estate credit performance is monitored by analyzing Markit iBoxx credit indices reflecting the performance of the Real Estate high yield corporate bond market.
MacroVar also monitors fundamental indicators closely linked to the Real Estate sector published monthly including analysis of sector specific PMI indicators, components of Manufacturing & Services PMI and Economic Sentiment Indicators analysis.
MacroVar also monitors other factors closely related to the Real Estate industry like closely related financial markets or macroeconmic indicators.
MacroVar estimates the following signals:: Real Estate momentum, Real Estate trend, Real Estate oscillator, Real Estate RSI and Real Estate returns.
Real Estate industry Description
The Real Estate industry includes the sectors of Real Estate Investment
& Services and Real Estate
The sector of Real Estate Investment & Services includes the subsectors of Real Estate Holding & Development and Real Estate Services.
The subsector of Real Estate Holding & Development includes companies that invest directly or indirectly in real estate through development, investment or ownership. Excludes real estate investment trusts and similar entities, which are classified as Real Estate Investment Trusts.
The subsector of Real Estate Services include companies that provide services to real estate companies but do not own the properties themselves. Includes agencies, brokers, leasing companies, management companies and advisory services. Excludes real estate investment trusts and similar entities, which are classified as Real Estate Investment Trusts. The sector of Real Estate Investment Trusts includes the subsectors of Industrial & Office REITs, Retail REITs, Residential REITs, Diversified REITs, Specialty REITs, Mortgage REITs and Hotel & Lodging REITs .
The sector of Financial Services includes the subsectors of Asset Managers, Consumer Finance, Specialty Finance, Investment Services and Mortgage Finance.
Real Estate industry MomentumMomentum is used to capture moves in shorter timeframes than trends. Momentum is the relative change occurring in markets. Relative change is different to a trend. A long-term trend can be up but the short-term momentum of a specific market can be 0. If a market moves down and then moves up and then moves back down the net relative change in price is 0. That means momentum is 0. A short-term positive momentum, with a long-term downtrend results in markets with no momentum.
MacroVar Real Estate momentum signal ranges from -100 to +100. The Real Estate momentum signal is derived as the mean value from 4 calculations for the Real Estate . The timeframes monitored are the following: 1 Day (1 trading day), 1 Week (5 trading days), 1 Month (20 trading days), 3 Months (60 trading days)
For each timeframe, the following calculations are performed: 1. Real Estate return is calculated for the specific timeframe and 2. if the return calculated is higher than 0, signal value output is 1 else signal value is -1. Real Estate momentum signal is the aggregate of the the 4 values. A technical momentum rollover is identified when Real Estate momentum signal moves from positive to negative value or vice-versa.
Real Estate industry trendReal Estate trend signal ranges from -100 to +100. Real Estate trend indicator is the mean value of the 8 calculations described below. The timeframes monitored are the following: 1-month (20 trading days), 3-months (60 trading days), 6-months (125 trading days), 1-year (250 trading days)
For each timeframe, the following calculations are performed: 1. Real Estate Closing price vs Real Estate moving average (MA) calculation: If Real Estate is greater than Real Estate MA value is +1, else -1, 2. Real Estate Moving average slope calculation: if current Real Estate moving average is higher than the previous MA, Real Estate upward slope +1, else -1
Real Estate trend model can be used as a trend strength indicator. Real Estate trend strength values ranging between +75 and +100 or -75 and -100 show strong trend strength.
A technical trend rollover is identified when Real Estate trend strength indicator moves from positive to negative value or vice-versa.
The most important trend indicator
The Real Estate 52-week simple moving average and its slope are the most important indicators defining a market’s trend. Real Estate is in an uptrend when Real Estate price is higher than the 52-week moving average and the Real Estate 52-week moving average has an upward slope. If fundamentals of the market have not changed and the moving average slope is still in uptrend, a price drop signifies a market correction and not a change of trend. Traders should watch oscillators like the Real Estate oscillator and Real Estate RSI to buy the dip and still follow the trend. The moving average slope turn signifies a change of trend.
Real Estate industry oscillatorThe Real Estate oscillator estimated by MacroVar is the z-score of the currentReal Estate price versus Real Estate 1-year simple moving average price. The formula for the Real Estate oscillator is:
Real Estate oscillator = (Current Price – 250 trading days Real Estate simple moving average price) / (250 days Real Estate price standard deviation)
Real Estate oversold conditions
Real Estate is oversold when it is subject to a persistent downward pressure due to extreme fund outflows. When the Real Estate is oversold it is often due for a rebound. Values of the Real Estate oscillator lower than -2.5 signify oversold conditions. It must be noted that the Real Estate oscillator must be analyzed ibn conjunction with the rest ofReal Estate quantitative factors. Traders should pay less attention to overbought or oversold conditions during strong trends. They should pay close attention during counter trends and all combined with the Real Estate RSI.
Real Estate overbought conditions
Real Estate is overbought when it is subject to a persistent upward pressure due to extreme fund inflows. When the Real Estate is overbought it is often due for a correction. Values of the Real Estate oscillator higher than +2.5 signify overbought conditions. It must be noted that the MacroVar oscillator must be compared to the rest of the Real Estate quantitative factors. Traders should pay less attention to overbought or oversold conditions during strong trends. They should pay close attention during counter trends and all combined with the RSI.
Real Estate RSI indicatorThe RSI indicator measures the speed and change of price movements. The RSI indicator oscillates between 0 and 100. RSI is a useful indicator during normal trending market conditions when an asset price oscillates around its trend value. During big moves and strong trends however, like short squeezes or price spikes RSI and other oscillators don’t work.
During normal trend market conditions and when Real Estate is in a downtrend RSI values between 50-60 signify overbought conditions before the downtrend is ready to resume. DuringReal Estate uptrend, RSI values of 40 to 50 signify oversold conditions before the uptrend is ready to resume. It is strongly not recommended to enter a position when the RSI is “overbought” and falling or vice versa.
Real Estate industry returnsMacroVar calculates Real Estate returns for the following timeframes: Daily, Weekly, Monthly, Yearly. The formula for calculating returns is:
Real Estate returns = (Real Estate Closing Price – Real Estate Previous Price)/(Real Estate Previous Price)