Apollo warns that the U.S. housing market may observe cooling conditions

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Apollo Global Management’s chief economist, Torsten Slok, is cautioning that the U.S. housing market is beginning to show signs of cooling.

In a note to investors, Slok highlighted that demand for homes is softening, weighed down by a combination of steep property prices, elevated mortgage rates, and slower population growth tied to weaker immigration trends.

On the supply side, the picture is mixed. Many existing homeowners remain hesitant to list their properties, as they are locked into lower-rate mortgages and reluctant to take on significantly higher borrowing costs in today’s market. However, the pipeline of new construction continues to expand, gradually adding to available inventory.

This imbalance is creating a shifting dynamic: with demand weakening and supply from new homes steadily rising, downward pressure on home values is emerging.

Slok noted that these factors could reshape market conditions, potentially easing affordability constraints but also signaling a turning point for housing momentum in the broader U.S. economy.

For investors looking to further keep a pulse on the housing and real estate market, outlined below are a group of related exchange traded funds that may be worth analyzing in further detail.

REAL ESTATE ETFS: (NYSEARCA:VNQ [https://seekingalpha.com/symbol/VNQ]), (NYSEARCA:XLRE [https://seekingalpha.com/symbol/XLRE]), (NYSEARCA:IYR [https://seekingalpha.com/symbol/IYR]), (BATS:ICF [https://seekingalpha.com/symbol/ICF]), (NYSEARCA:RWR [https://seekingalpha.com/symbol/RWR]), (NYSEARCA:DFAR [https://seekingalpha.com/symbol/DFAR]), (NYSEARCA:FREL [https://seekingalpha.com/symbol/FREL]), (NYSEARCA:MORT [https://seekingalpha.com/symbol/MORT]), (NYSEARCA:SRVR [https://seekingalpha.com/symbol/SRVR]), (BATS:REM [https://seekingalpha.com/symbol/REM]), (NYSEARCA:REZ [https://seekingalpha.com/symbol/REZ]), (NYSEARCA:USRT [https://seekingalpha.com/symbol/USRT]), and (NYSEARCA:HOMZ [https://seekingalpha.com/symbol/HOMZ]).

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