Real eState
Part-time Pecotic beats ex-No. 8 Jack Sock
|
Full-time real estate professional Matija Pecotic stunned former world No. 8 Jack Sock on his ATP Tour main draw debut at the Delray Beach Open on Tuesday.
Pecotic, who works as a director at a real estate investment firm, plays tennis part time and beat Sock 4-6, 6-2, 6-2 to set up a tie with American Marcos Giron in the round of 16 on Wednesday in Florida.
The Croatian said he had to “leave work early” to play his match against Sock.
“I had to leave work early today,” Pecotic said. “I had to send an email to the whole team. [My boss] let me off. I’m going to have to ask for another day off tomorrow.”
The world No. 784 had a career-high ranking of No. 206 in 2015, but his tennis career was dealt a blow when he had complications after surgery. The 33-year-old refound his love for the sport when he went on to study at Harvard Business School.
He downed Sock in two hours and 10 minutes, rattling off 10 aces and 30 winners in the first-round match.
“You’ve got to be realistic,” Pecotic said. “This is a former top-10 guy with an incredible amount of tennis experience and a huge serve. He came out serving 134 mph on the first serve. It would be arrogant to think I’m going to come out and expect to win.
“But I figured, if I could sink my teeth into the match and work on the two or three patterns I prepared before, that I’m going to have a chance.”
On his training schedule, Pecotic said he finds “creative ways to work around it.”
“I absolutely love this game, and I know it’s not forever and I’m 33,” he said after qualifying for the main draw.
“I try to maximise each day. I try to train every morning if I can, five, six times a week. Sometimes I train with my boss, who is 70 years old. This week I trained with a guy who is probably in his late 50s. But you find creative ways to work around it.”
Giron, Pecotic’s next opponent, is ranked No. 55 and beat Australian Open quarterfinalist Ben Shelton in the first round.
Real eState
The real estate sector's unique view of 2024 — and what's to come – Yahoo Finance
This is The Takeaway from today’s Morning Brief, which you can sign up to receive in your inbox every morning along with:
Despite a rough few days for the S&P 500, which is still comfortably in the green this year (up 6%), one sector of the stock market is feeling more pain than the rest.
The perception that rates might stay higher for longer is hammering the real estate sector, even as debate rages about how many times — if any — the Federal Reserve will cut rates this year.
The group is far and away the worst performer in the S&P 500 for 2024, down more than 10%. The bulk of those declines have come in the past two weeks, as Treasury yields have climbed to their highest level since November and investors traverse the acceptance phase that the hoped-for cuts are not on their way.
Now investors are faced with the question of whether to buy the dip or, to quote another market cliché, risk trying to catch a falling knife.
One real estate investor said the rent indicators she’s seeing in real time are encouraging on the inflation front. That’s in contrast to the much-criticized rental barometers that the Fed relies on.
“If you take into account real-time shelter costs, it’s much lower than what’s in the prints,” Uma Moriarity, senior investment strategist at CenterSquare, told Yahoo Finance. “We think inflation is trending in the right direction.”
That’s why she’s still confident in three rate cuts this year — a view, of course, that the market has been moving away from. It’s also why she’s still confident in real estate. That, plus the fact that stocks are relatively cheap.
Read more: What the Fed rate decision means for loans and mortgages
The reasons that real estate stocks suffer when rates are on the rise are twofold. First off, the companies tend to carry a lot of debt, and as rates go higher, it becomes more difficult to service or refinance that debt. Secondly, with relatively high dividend yields, the stocks compete with instruments like money market funds for investing dollars.
It’s traditionally been tough for real estate stocks to rally in the face of rising rates. But if Moriarty — and Citigroup — are right, they might not be rising for as long as the broader market anticipates.
Julie Hyman is the co-anchor of Yahoo Finance Live, weekdays 9 a.m.-11 a.m. ET. Follow her on Twitter @juleshyman, and read her other stories.
Click here for in-depth analysis of the latest stock market news and events moving stock prices.
Read the latest financial and business news from Yahoo Finance
Real eState
Celebrity real estate agent Mauricio Umansky explains when housing prices will come down – Fox Business
Real eState
Real Estate Stocks Fall As Mortgage Rates Rise To 4-Month Highs: 'Inflation Is Proving Tougher To Bring D – Benzinga
Real estate stocks slid at Wednesday’s market open, weighed down by the latest disappointing data on housing starts and a spike in mortgage rates, darkening the outlook for the sector.
By 9:00 a.m. EST, the Real Estate Select Sector SPDR Fund XLRE had dropped by 0.3%. This marked its fourth consecutive day of losses and set a course for its lowest close since the end of November 2023.
The fund has also slipped below its 200-day moving average, a critical long-term benchmark, signaling that investor sentiment has turned negative.
The average interest rate for 30-year fixed-rate mortgages with loan balances up to $766,550 climbed by 12 basis points to 7.13% for the week ending Apr. 12, 2024, according to the latest figures from the Mortgage Bankers Association. This rate is the highest recorded since early December.
On Wednesday, the yield on a 30-year Treasury bond, a key benchmark for long-term mortgage rates, traded at 4.75%, at the highest since mid-November 2023, as Fed Chair Powell admitted that there has been a lack of progress in the disinflation trend.
Chart: Real Estate Stocks Fall Below Key Long-Term Moving Average As Inflation Bites Again
Weaknesses In Multifamily Segment Continue
Joel Kan, MBA’s Vice President and Deputy Chief Economist, explained the rise in rates, stating, “Rates increased for the second consecutive week, driven by incoming data indicating that the economy remains strong and inflation is proving tougher to bring down.”
Despite the uptick in mortgage rates, there was a 3.3% week-over-week increase in the Market Composite Index, which measures mortgage loan application volume.
Kan further noted, “Application activity picked up, possibly as some borrowers decided to act in case rates continue to rise. Purchase applications were the primary driver of this increase, although they are still about 10% lower than last year’s levels. There was a slight uptick in refinance applications, mainly due to a 3% rise in conventional applications.”
Chart: US 30-Year Mortgage Rates Rose To The Highest Level Since Late November
The real estate market’s challenges are linked to affordability and a shrinking availability as the supply of new homes falls.
Andrew Foran, an economist at Toronto Dominion Securities, commented on the trend in home building, “Homebuilding activity moderated in March as weakness in the multifamily segment persisted and the single-family segment gave back most of its considerable gain from the prior month.”
Data revealed a 14.7% month-over-month decline in housing starts in March, with the figures dropping to 1.32 million annualized units, significantly below the anticipated 1.49 million.
Both the single-family and multifamily sectors experienced declines, with single-family starts down by 12.4% (or 145,000 units) and multifamily starts plummeting by 21.7% (or 83,000 units). This retreat in multifamily starts marked the lowest level since April 2020.
Additionally, residential permits decreased more than expected in March, falling by 4.3% month-over-month to 1.46 million annualized units. This included a 5.7% drop in single-family permits—the first decline in fifteen months—and a 1.2% reduction in multifamily permits.
Rising & Falling
The weakest performers among real estate stocks with a market cap of at least $1 billion on Wednesday were:
Name | 1-day %chg |
---|---|
Prologis, Inc. PLD | -6.55% |
First Industrial Realty Trust, Inc. FR | -3.33% |
STAG Industrial, Inc. STAG | -2.89% |
EastGroup Properties, Inc. EGP | -2.89% |
Rexford Industrial Realty, Inc. REXR | -2.35% |
Those showing the highest gains were:
Name | 1-day %chg |
---|---|
SL Green Realty Corp. SLG | 3.18% |
Opendoor Technologies Inc. OPEN | 2.55% |
Medical Properties Trust, Inc. MPW | 2.49% |
eXp World Holdings, Inc. EXPI | 2.32% |
Vornado Realty Trust VNO | 2.25% |
Now Read: Best REITs to Buy in April
Image: Midjourney
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
-
Tech19 hours ago
Cytiva Showcases Single-Use Mixing System at INTERPHEX 2024 – BioPharm International
-
News20 hours ago
Tim Hortons says 'technical errors' falsely told people they won $55K boat in Roll Up To Win promo – CBC.ca
-
Politics23 hours ago
Florida's Bob Graham dead at 87: A leader who looked beyond politics, served ordinary folks – Toronto Star
-
Health15 hours ago
Supervised consumption sites urgently needed, says study – Sudbury.com
-
Science23 hours ago
Record breaker! Milky Way's most monstrous stellar-mass black hole is sleeping giant lurking close to Earth (Video) – Space.com
-
Tech21 hours ago
Aaron Sluchinski adds Kyle Doering to lineup for next season – Sportsnet.ca
-
Tech20 hours ago
Nintendo Indie World Showcase April 2024 – Every Announcement, Game Reveal & Trailer – Nintendo Life
-
Media23 hours ago
Georgia’s parliament votes to approve so-called ‘Russian law’ targeting media in first reading – CityNews Kitchener