LOS ANGELES: Real estate stocks have been on a tear for more than a year, jumping almost 7 per cent in January alone, but a recent dip suggests some are worried about too-high valuations, despite the sector’s strong fundamentals.
Last month’s jump was driven by the start of the European Central Bank’s $1 trillion (0.66 trillion pound)-plus stimulus and a new wave of monetary easing by central banks, moves that promise to keep global interest rates low and markets awash with liquidity.
Coupled with a real estate market where demand outstrips supply in almost all markets and property types, the prospect for continued solid returns for Real Estate Investment Trusts (REITs) is strong, investors say…