Barclays, JPMorgan, Bank of America at Odds over Housing Stocks

Strategists at Barclays and JPMorgan have recently expressed their bearish views on the housing sector.

Barclays strategists gave the real estate sector an underweight rating, saying that higher interest rates mean lower valuations. And real estate stocks also face two major challenges. One is the structural change of working from home, and the second is the digitization of the retail industry.

Strategists at JPMorgan Chase also recommend underweight the property sector, arguing that its fundamentals are poor. They noted, however, that stagnant bond yields could provide some respite.

Strategists at Bank of America are relatively sanguine. They see declines in bond yields because of the recession, which is a reason to add to property stocks this year.

Among European real estate stocks, Sweden faces the greatest risk, according to Michael Msika, a strategist at Bloomberg Markets.

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