Potential real estate investors do not need to feel that prices in the current market are low when there are other ways to access the sector, one of which is FlexShares Global Quality Real Estate Index Fund (GQRE)…
Even with record low interest rates, the current sellers’ market makes it a competitive market for potential homeowners. According to a recent CNBC article, the competition has become so intense that some simply give up.
“Pending sales have been hovering since January, indicating a turning point for the market,” said Lawrence Yoon, chief economist for realtors. “Buyers are still motivated and eager to own a home, but record high house prices are forcing some to retreat.”
House prices jumped 17% in May from last year, according to the S&P Case-Shiller National Home Price Index. As of June, the data may well exceed this number, especially given the low supply and the number of buyers wanting to get into the house.
Even with historically low mortgage rates, the seller still wins in the current market environment.
“With prices hitting record highs and mortgage rates still hovering around record lows, sellers are accepting the favorable conditions,” said George Ratiu, senior economist at Realtor.com.
GQRE is committed to investment performance that broadly matches the price and yield (excluding fees and costs) of the Northern Trust Global Quality Real Estate Index. The index is designed to reflect the performance of a number of companies that collectively are more influenced by quality, value and dynamics than the Northern Trust Global Real Estate Index.
A global approach to real estate
Gaining global access to real estate means that investors get all the benefits of real estate with an international diversification component. With real estate prices rising, investors can also get inflation insurance in addition to the income aspect of real estate investment without the landlord headache.
“Investors are looking for real estate investments for many reasons, including as a potential protection against long-term inflation and as alternative sources of potential portfolio income,” – Focus article FlexShares Fund said. “But we believe that all the benefits of this investment can be better reaped through a broad global approach that includes the well-established real estate markets in developed countries around the world. Broadening the investment perspective to include these global opportunities can help investors achieve their goals more effectively. ”
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