Why Real Estate ETFs Could be Tapped Now – May 28, 2021
The U.S. real estate sector has been under pressure amid the peak of lockdown. However, things are have been changing for the betterment and the losing trend may shift ahead because of the below-mentioned reasons.
The current economic backdrop is promising for an inflation comeback. The Consumer Price Index rose for April from a year earlier was the sharpest since September 2008. The Consumer Price Index increased 4.2% from a year earlier, breezing past the estimate of 3.6% increase. The sequential inflation was 0.8%, against the expected 0.2%.In a rising inflation environment, real estate stocks act as a good bet. Both, resale value of the property and rental income, rise with price inflation.
Uptick in Home Prices is a Boon for Renters
The U.S. homebuilding sector is on fire. Thanks to extremely low mortgage rates, home sales are upbeat. But higher…