Real estate stocks outperform major market averages amid surging rate cut hopes

[Real Estate]
Brudder/DigitalVision via Getty Images

It was a positive week for real estate stocks as interest rates took center stage.

The odds of a rate cut [https://seekingalpha.com/news/4488363-fed-rate-cut-odds-rise-after-powells-jackson-hole-speech] in September rose after Federal Reserve Chair Jerome Powell's speech at Jackson Hole.

At Jackson Hole, Powell remarked that a shifting balance of risks "may warrant adjusting our policy stance," signaling a potential willingness to lower the central bank’s policy rate if conditions justify it.

The chance of a September rate cut was at ~71% before the speech and rose to ~93% after it.

The rise in rate cut odds comes at a time when U.S. President Donald Trump has repeatedly criticized the Fed and Chair Powell for not lowering interest rates.

Meanwhile, Trump told [https://seekingalpha.com/news/4487850-trump-considers-firing-fed-governor-lisa-cook---report] aides that he's thinking about firing Fed Governor Lisa Cook if she doesn't resign after one of his housing officials accused her of mortgage fraud, the _Wall Street Journal_ reported, citing a senior White House official and one other person.

If he fires Cook, Trump is poised to exert even more influence over the Fed's leadership.

The possible firing underscores the president's growing frustration with the central bank policymakers for not cutting interest rates.

If Trump is successful in removing Cook from the central bank's board of governors, he may be able to fill a fifth seat on the seven-member board.

And, assuming that Powell also steps down from the board in May, he'll get to nominate another board member.

Meanwhile, Cook has no intention to resign.

"I have no intention of being bullied to step down from my position because of some questions raised in a tweet," Cook said [https://www.bloomberg.com/news/articles/2025-08-20/fed-s-cook-says-she-won-t-be-bullied-into-stepping-down?srnd=homepage-americas]in an emailed statement to Bloomberg News via a Fed spokesperson. She said she's gathering accurate information to answer legitimate questions and provide facts.

* DEAR READERS: We recognize that politics often intersects with the financial news of the day, so we invite you to click here to join the separate political discussion [https://seekingalpha.com/article/4802974-politics-and-the-markets-082325].

Nevertheless, after Powell's speech at the Jackson Hole Symposium, it is now widely expected that the Fed will slash its rates by a quarter point.

The S&P 500 Real Estate Index Sector (SP500-60) rose 2.42% from the prior week to close at 265.53, while the accompanying Real Estate Select Sector SPDR Fund ETF (NYSEARCA:XLRE [https://seekingalpha.com/symbol/XLRE]) added 2.44% to 42.34.

Comparatively, the benchmark S&P 500 index was up 0.27% only to 6,466.91.

Dow Jones REIT Indx Equity REIT Total Return Index (NASDAQ:REIT:IND [https://seekingalpha.com/symbol/REIT:IND]) gained 2.76% to 2,696.02, while FTSE Nareit All Equity REITs closed 2.69% higher at 777.61.

NOTABLE NEWS

Home Depot's Q2 earnings indicate [https://seekingalpha.com/news/4487089-home-depot-gains-on-improving-trends-plans-to-raise-prices-on-some-items-due-to-tariffs] that the housing market has bottomed and is now turning a corner based on the late quarter improving trend.

Opendoor Technologies (OPEN [https://seekingalpha.com/symbol/OPEN]) extended [https://seekingalpha.com/news/4486609-opendoor-stock-extends-jump-as-online-hype-continues] gains as market participants and influencers continued to tout the stock on social media.

Plymouth (PLYM [https://seekingalpha.com/symbol/PLYM]) stock was surging [https://seekingalpha.com/news/4486899-plymouth-stock-jumps-on-acquisition-offer-from-sixth-street-partners] after the industrial REIT announced the receipt of an unsolicited, non-binding acquisition proposal from Sixth Street Partners.

Eastgroup Properties (EGP [https://seekingalpha.com/symbol/EGP]) raised [https://seekingalpha.com/news/4488431-eastgroup-properties-raises-dividend-by-11] its quarterly dividend per share by 10.7% to $1.55 from $1.40.

REAL ESTATE STOCKS WITH OVER 10% RETURNS THIS WEEK

* Opendoor Technologies (OPEN [https://seekingalpha.com/symbol/OPEN]) (+58.04% W/W)
* Plymouth Industrial REIT (PLYM [https://seekingalpha.com/symbol/PLYM]) (+41.02% W/W)
* Fathom Holdings (FTHM [https://seekingalpha.com/symbol/FTHM]) (+22.95% W/W)
* Generation Income Properties (GIPR [https://seekingalpha.com/symbol/GIPR]) (+21.21% W/W)
* Diversified Healthcare Trust (DHC [https://seekingalpha.com/symbol/DHC]) (+12.76% W/W)
* Service Properties Trust (SVC [https://seekingalpha.com/symbol/SVC]) (+12.00% W/W)
* FrontView REIT (FVR [https://seekingalpha.com/symbol/FVR]) (+11.40% W/W)
* Orion Properties (ONL [https://seekingalpha.com/symbol/ONL]) (+11.16% W/W)
* Strawberry Fields REIT (STRW [https://seekingalpha.com/symbol/STRW]) (+10.40% W/W)

SUBSECTOR PERFORMANCES [https://static.seekingalpha.com/uploads/2025/8/23/saupload_REITs_weekly.jpg]

MORE ON REAL ESTATE

* XLRE: Outlining Its Key Components And Quantifying Its Role In A Portfolio [https://seekingalpha.com/article/4799972-xlre-outlining-key-components-and-quantifying-role-in-portfolio]
* XLRE: Downgrade To Sell, As 5-Year Rough Patch Continues [https://seekingalpha.com/article/4789721-xlre-downgrade-to-sell-5-year-rough-patch-continues]
* Real estate stocks surge after Powell signals rate change ahead [https://seekingalpha.com/news/4488382-real-estate-stocks-surge-after-powell-signals-rate-change-ahead]
* REITs see year-over-year decline in quarterly earnings - report [https://seekingalpha.com/news/4488037-reits-see-year-over-year-decline-in-quarterly-earnings---report]
* Seeking Alpha’s Quant Rating on The Real Estate Select Sector SPDR® Fund ETF [https://seekingalpha.com/symbol/XLRE/ratings/quant-ratings]