Home prices have continued to accelerate in recent months due to insatiable demand fueled by a shortage of homes listing on the market.
The S&P CoreLogic Case-Shiller National Home Price Index, which measures average home prices in major metropolitan areas across the nation, rose 19.8% in the year that ended in February, up from a 19.1% annual rate from the prior month. February marked the highest annual rate of price growth since August, the Wall Street Journal reports.
The Case-Shiller index, which measures repeat-sales data, reports on a two-month delay. Inventory has risen since February but remains far below normal levels. The median existing-home price rose 15% in March from a year earlier, NAR said, to $375,300, a record high in data going back to 1999, the Wall Street Journal reports.
Now is the ideal time to consider an allocation to global real estate, as global REIT performance hasn’t rebounded like traditional stock markets, and, like other asset classes, large drawdowns have led to higher future return potential.
Adding exposure to a diverse array of global real estate markets with the Virtus Duff & Phelps Global Real Estate Securities Fund (VGISX) has provided lower correlations and lower beta to traditional stocks, and, as part of a balanced portfolio, has historically lowered risk and enhanced returns, according to Virtus.
By focusing on rental property companies with contractual revenues, the team managing VGISX has amassed a compelling track record of risk-adjusted performance driven by actively managed stock selection.
Active managers have the flexibility to benefit from market dislocations, making active management a key approach to gaining exposure to real estate.
VGISX is actively managed by Geoffrey Dybas and Frank Haggerty, who have been co-PMs since the fund’s inception in 2009. Dybas and Haggerty are supported by an experienced team with exceptional continuity, applying a disciplined investment process focused on owner/operators of high-quality listed real estate.
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