Real Estate iShares IYR

A look at how IYR has been doing over the years. I bought this first in 2007, then sold it, only to see it rise and then crash.

Could the trend party in IYR be over? Maybe.

A lot of information can be gleaned from observing a price chart, mostly technical information. A lot of traders/investors forget that fundamental and sentiment information also drives prices up or down.


I wrote an update back in 2019 and review how well IYR did all these years. Now that it's 2020 and COVID-19 hit, the market in the summer is ON FIRE! There's been so much market variance and shenanigans since I first posted about it in 2007. We've had super low-interest rates that fueled the market crash in 2007 / 2008, then we still had historically low rates through the Obama years, only to have Trump scare the Federal Reserve into submission and make rates even lower.

We took advantage of those rates to refinance again, this time down the lowest we've ever had: 2.25%. The mortgage company said they've been dealing with unprecedented demand. On top of that, my realtor friends say that houses have been selling like crazy. There are bidding wars and many New York City people are moving out to the suburbs. Why? Because of COVID-19. My guess is that people don't want to be in a city when there's a pandemic. At least in the suburbs, they can walk around in their yards or the street without fear of bumping into someone. It makes a ton of sense to me.

Here's what IYR was doing in 2019 when I made my first update. It was trading at around $87 a share. It didn't go ANYWHERE really in the past 12 years.


13 years later, it's actually lower. Here's IYR today (August 28, 2020) trading around $84 a share. It's still recovering from the COVID-19 selloff.


End Notes

While I like real estate in general, I'm wondering if we're going to go into a long period of sideways action. People are fleeing the cities right now and prices will come down in the city. On top of that, working environments are going to change to deal with post COVID-19.

There will be more people going virtual and I think the demand for office space will drop for a while. It might be a good idea to buy a condo now, somewhere near the City, like Hoboken.