What’s happening: The International Monetary Fund’s Global House Price Index, which tracks 57 countries, has surpassed its prior peak from 2008. According to Oxford Economics, house prices are growing at over 10% year-over-year in many major economies.
The frenzy is boosting stocks exposed to the sector. The iShares exchange-traded fund tracking residential real estate is up 23% in 2021, significantly outpacing the S&P 500.
AvalonBay Communities (AVB)
, which develops and manages apartments across the United States, has skyrocketed 31%. Invitation Homes (INVH)
, which owns and operates US single-family homes, has jumped 26%.
Stories of madness abound. Real estate agents
have told CNN Business
about increasingly rabid methods clients have deployed to secure properties — from bidding $1 million over the asking price to paying a competing bidder hundreds of thousands of dollars just to walk away.
One agent listed a home in Colorado…