If you follow the stock market, there is big news today. Apple, Starbucks and other companies are not seeing the “charge” in their stock today as it seems investors are now looking even more so at property than stock when it comes to placing their cold, hard cash. And, as if investing in hard property isn’t good news enough, CNBC is reporting that real estate S&P is getting their own sector;
“Real estate stocks are getting a place of their own in the market this week, and investors are taking notice.
As of the close of trading Friday, the industry will become its own sector in the S&P 500, bringing the broad market index up to 11 divisions. The move primarily affects real estate investment trusts (REITs), moving 28 issues with nearly $600 billion in market cap out of the financial sector and into the new real estate heading.
The decision came primarily because officials at S&P Dow Jones Indices believe the industry has become large enough that it should be split from the broader financials that include commercial and investment banks, insurers, brokerages and exchanges.”
What does this mean for you – as a buyer or a property owner? Value! Yes, property values probably will become more stable as a result. And with low-inventory in a competitive Walnut Creek, home prices could go up. If you’re looking to sell, you may want to wait a month as you might get more for your money. If you’re looking to buy, well right now is a good time as the potential for a cost increase could be right around the corner.
If you want to know more about how the S&P news could impact your sale or your next home purchase, please contact me. I’d love to talk with you over a local cup of coffee and discuss how this news will directly impact you!