(Read More: The Other Housing Recovery: Agents’ Pay)

“Physical real estate is attracting institutional investors because there is a positive spread between how much it costs to finance real estate versus the income generated,” added Goldfarb.

On a total return basis, the FTSE NAREIT All REITs Index gained 5.80 percent in April and the FTSE NAREIT All Equity REITs Index gained 6.33 percent, while the SP 500 was up 1.93 percent.

While almost all sectors of U.S. REITs have delivered double-digit gains year-to-date, some are outshining others. Health care was the industry’s top-performing major sector, with a 23.77 percent total return, according to the NAREIT report. Lodging was up 17.51 percent, and retail was up 17.34 percent, led by shopping centers.

An improving economy is clearly sending consumers back on vacation and back to the malls. Health care has been a consistent leader, as Baby Boomers fuel the aging population.

(Read More: Map: Tracking the US Real Estate Recovery)

A product of the real estate recovery, Mortgage REITs were up nearly 19 percent and Home Financing REITs were up over 17 percent. Commercial financing is driving much of the former, but these sectors are benefitting from a potential thaw in mortgage credit in residential as well.

“There are signs that conditions are beginning to loosen,” according to analysts at Capital Economics, who also noted that mortgage demand is on the rise.

Article source: http://www.cnbc.com/id/100734766

(Read More: The Other Housing Recovery: Agents’ Pay)

“Physical real estate is attracting institutional investors because there is a positive spread between how much it costs to finance real estate versus the income generated,” added Goldfarb.

On a total return basis, the FTSE NAREIT All REITs Index gained 5.80 percent in April and the FTSE NAREIT All Equity REITs Index gained 6.33 percent, while the SP 500 was up 1.93 percent.

While almost all sectors of U.S. REITs have delivered double-digit gains year-to-date, some are outshining others. Health care was the industry’s top-performing major sector, with a 23.77 percent total return, according to the NAREIT report. Lodging was up 17.51 percent, and retail was up 17.34 percent, led by shopping centers.

An improving economy is clearly sending consumers back on vacation and back to the malls. Health care has been a consistent leader, as Baby Boomers fuel the aging population.

(Read More: Map: Tracking the US Real Estate Recovery)

A product of the real estate recovery, Mortgage REITs were up nearly 19 percent and Home Financing REITs were up over 17 percent. Commercial financing is driving much of the former, but these sectors are benefitting from a potential thaw in mortgage credit in residential as well.

“There are signs that conditions are beginning to loosen,” according to analysts at Capital Economics, who also noted that mortgage demand is on the rise.

Article source: http://www.cnbc.com/id/100734766

Rising rents and increased demand for rental apartments has fueled the theory that from young Millenials to downsizing Baby Boomers, the recent housing crash has changed the way Americans want to live, shifted attitudes toward home ownership and created a strong new desire for big-city living. Rising gas prices have also pushed more home buyers closer to city centers.

(Read More: Why Women are Driving the Demand for Rental Apartments)

While 23 percent of survey respondents categorically reject the idea of living in a city center, others could be swayed if, again, offered the right amenities. These include walking/jogging trails, nearby parks and an outdoor swimming pool. That bodes well for planned, gated communities.

The age of the McMansion may be over, as money spent on space is reallocated to energy efficiency and home technology. Builders today will look to do more with less space, and buyers who can now afford to be picky about amenities, certainly will be.

Article source: http://www.cnbc.com/id/100491599

“In many areas, we are seeing more interest in urban infill locations than in remote exurbs, which is having a pronounced shift in neighborhood design elements,” said AIA Chief Economist, Kermit Baker. “And regardless of city or suburban dwellers, people are asking more from their communities in terms of access to public transit, walkable areas and close proximity to job centers, retail options and open space.”

Half of residential architecture firms highlight demand for multi-generational housing, up from 44 percent in 2011. Fifty-nine percent said access to public transportation is key, up from 47 percent a year ago. (Read More: New Nightmare for Home Builders: Not Enough Skilled Workers)

More homeowners are also upsizing what they have, with 58 percent of architects reporting improvement in additions and alterations, up from just 35 percent a year ago; kitchen and bath, as usual, top the must-have list.

During the last housing boom, extravagance drove new construction and remodeling. Now, the trends are more practical, with energy efficiency and the need to accommodate growing families driving the gains. Home owners are also looking to builders to help them use the space they have more efficiently, especially Baby Boomers.

“They have a lot of desires for the home, and we’re hearing this group say they want functionality and smartly-designed homes without wasted space,” said Meyer, who adds that this doesn’t necessarily translate into smaller homes. While these findings bode well for the home builders, they may also add optimism to the upper end of the market, and all those so-called “McMansions,” many of which lost significant value during the housing crash. (Read More: Pending Home Sales Surge to Five Year High)

Article source: http://www.cnbc.com/id/100321206

Today’s report on consumer confidence, or the striking lack of it, is yet another sign that housing is going to be in a very sticky state for a while. It’s hard to say whether housing is weighing on confidence or lack of confidence is weighing on housing; the answer lies somewhere in the middle.

Next week is a big week for housing because we get the all-important readings on existing and new home sales for May. The pending home sales index, based on contracts signed, not closings, fell dramatically in April, and that has the housing prognosticators building another arc for the flood of bad news yet to come. Home builder sentiment fell in June, largely based on competition from distressed properties and high material costs, but you can bet the builders know we’re in for some tough sales numbers in their market as well.

I know I’ve said this before, but here I go again: All real estate is local, but confidence is national. Potential summer buyers, who are historically few and far between, will be watching the national numbers, as they try to time the bottom of the market, which is of course impossible to do.

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Article source: http://www.cnbc.com/id/43443675?__source=RSS*blog*&par=RSS