In the U.S., reported strong interest in property bonds
Recent data for the U.S. market show that the real estate sector has reached the ‘bottom‘
The U.S. markets have been under increased pressure throughout the last month due to weak employment growth, which together with concerns about the debt crisis in the Euro zone caused a fall of investment shares worldwide.
The online edition of the specialized investments magazine – Zacks, reported that most segments of the bonds market were also affected by this negative trend.
One market sector, however, demonstrated impressive results despite the worldwide economic instability - the real estate sector. In fact, it performs even better than investment segments traditionally considered safe havens, such as utilities and gold.
This interesting trend is most likely due to higher yields of the bonds related to real estate.
Most exchange-traded property funds have increased by over 100% over the past three years, and since the beginning of this year, there has been a double-digit increase recorded.
In last month alone, in bonds related to real estate, were invested nearly 1 billion euro, in contrast to the exchange traded funds market, from which in recent months have been drawn billions of euros.
One reason for the increased interest in ETFs is the imposed the opinion that the U.S. housing market has reached bottom. The sales of new homes, taking into account seasonal factors show better than expected results and upcoming sales of properties also beat forecasts.
Given recent market data, robust capital inflows and high yield, it is no wonder investors are flocking to the bonds related to real estate.
