Invest in real estate?

Our analysis and ratings indicate this might be a good time to invest in real estate. And while some say the next crash is right around the corner, the most recent numbers suggest otherwise.

The housing data released on July 19, 2016, by the U.S. Department of Commerce indicate new residential construction permits went up by 1.5 percent during June compared to May, and housing starts were up 4.8 percent. But, compared with a year ago, both new residential construction permits and housing starts were down, 13.6 percent and 2 percent respectively.

July 2016 data also indicates there was a 3.5 percent increase in new home sales from May to June, up 25.4 percent from a year ago. This suggests more people are buying homes, and the 10-year low foreclosure rates indicate homeowners are able to make timely mortgage payments.

According to the S&P/Case-Shiller index data published on July 26, the price of an average home in the 20 metropolitan areas went up by 5.2 percent for the twelve months to May 2016, but went down from 5.4 percent since the prior month. 

According to RealtyTrac, foreclosures for the month of June were at a 10-year low, down 6 percent from the previous month, and down 19 percent from a year ago.

New Jersey, Maryland, and Delaware posted the highest foreclosure rates in the first half of 2016. New Jersey was at the top of the “worst state” list with 0.98 percent of housing units having a foreclosure filing. Maryland was the second worst with 0.90 percent of housing units in foreclosure, and Delaware was third with 0.78 percent.

So the overall numbers paint a pretty picture: additional residential units are being built, home prices are up, and foreclosures are down to a 10-year low. Sounds pretty good.

Now let’s take a look at BUY rated real estate related stocks, Mutual Funds, and ETFs with higher than average 1-, 3-, and 5-year performance, and see how they reflect the positive real estate developments.  

The table below shows you the top five stocks based on their one-year performance. The full list contains much more than the table below, and can be easily customized to reflect numerous data points.

BUY Rated Real Estate Stocks



Name
Weiss
Investment
Rating


Ticker
1-Year
Total
Return (%)
3-Year
Total
Return (%)
5-Year
Total
Return (%)
Market
Cap
Billions ($)
CoreSite Realty Corporation B+ COR 69.17 163.33 490.17 2.75
Agree Realty Corp. A ADC 68.01 95.74 200.46 1.13
Manhattan Bridge Capital, Inc. B LOAN 63.28 356.49 629.78 0.05
Healthcare Realty Trust Inc. B HR 53.64 70.12 173.87 4.15
EPR Properties A EPR 52.72 87.70 165.68 5.13
Table Data as of 8/15/2016

BUY Rated Real Estate ETFs



Name
Weiss
Investment
Rating


Ticker
1-Year
Total
Return (%)
3-Year
Total
Return (%
5-Year
Total
Return (%
Total
Assets
Billions ($)
Vanguard REIT Index Fund ETF Shares A- VNQ 18.31 48.44 99.64 67.30
iShares Cohen & Steers REIT ETF B ICF 17.26 54.59 93.99 4.26
iShares U.S. Real Estate ETF B IYR 15.65 45.80 85.85 4.95
iShares Residential Real Estate Capped ETF B REZ 15.64 54.55 95.86 0.5
Table Data as of 8/15/2016

BUY Rated Real Estate Mutual Funds



Name
Weiss
Investment
Rating


Ticker
1-Year
Total
Return (%)
3-Year
Total
Return (%
5-Year
Total
Return (%
Total
Assets
Billions ($)
Cohen & Steers Quality Income Realty Fund B- RQI 20.97 66.65 129.65 1.68
Fidelity® Real Estate Investment Portfolio B FRESX 19.74 55.40 103.94 5.56
Deutsche Real Estate Securities Fund Class R6 B+ RRRZX 19.44 52.26 97.71 1.67
Deutsche Real Estate Securities Fund Institutional Class B+ RRRRX 19.29 51.92 97.27 1.67
Deutsche Real Estate Securities Fund Class S B+ RRREX 19.24 51.57 96.21 1.67
Table Data as of 8/15/2016

Check out the stock, Mutual Fund and ETF lists in their entirety. All of these investments indicate real estate might be a good place to invest your money at the moment. These investments offer excellent returns and some even pay a dividend.

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