By Herbe
rt Lash | Reuters
Real estate stocks have been on a tear for more than a year, jumping almost 7 percent 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-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 U.S. 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, or REITs, is strong, investors say.
