Realty Rally Peaks as Launches Drop, Analysts Advise Stock Bets

The real estate sector is showing signs of strain globally, with India's Nifty Realty index down 8.5% in 2025 amid declining volumes and project launches affected by election-year delays, though some optimism remains for FY26 due to expected lower home loan rates and resolved supply issues. In the U.S., a housing market imbalance has emerged with half a million more homes for sale than buyers, leading to accumulating listings and price declines, as potential buyers hesitate due to high interest rates and economic uncertainty. Meanwhile, in Canada, fears of a housing bubble burst are prompting investors to seek stable income sources like Timbercreek Financial, a mortgage lender offering high dividend yields and steady cash flow despite potential real estate declines. Air Canada also stands to benefit from currency shifts, as a strengthening Canadian dollar would reduce its U.S. dollar-denominated costs, potentially improving margins and aiding its recovery after recent losses. Overall, while housing markets face challenges from high rates and economic concerns, select real estate-related stocks and sectors present opportunities for cautious investors looking for growth or income amid volatility.