Housing Prices Vs. REITs
FHFA is the federal agency regulating Fannie Mae, Freddie Mac, and 12 Federal Home Loan Banks. The index below represents home sales throughout the U.S. NAREIT is a real estate investment trust trade group. The index is comprised of all publicly traded equity REITs in the U.S. The largest real estate mutual fund oversees $6 billion.
Home Prices vs. REITs
| FHFA Index | REIT Index | REITs > Homes |
1991 | 2.9% | 35.7% | ✓ |
1992 | 2.2% | 14.6% | ✓ |
1993 | 2.4% | 19.6% | ✓ |
1994 | 1.3% | 3.2% | ✓ |
1995 | 4.6% | 15.3% | ✓ |
1996 | 2.7% | 35.3% | ✓ |
1997 | 4.6% | 20.3% | ✓ |
1998 | 5.0% | -17.5% |
|
1999 | 4.9% | -4.6% |
|
2000 | 7.2% | 26.4% | ✓ |
2001 | 7.3% | 13.9% | ✓ |
2002 | 6.9% | 3.8% |
|
2003 | 7.0% | 37.1% | ✓ |
2004 | 10.4% | 31.6% | ✓ |
2005 | 11.1% | 12.2% | ✓ |
2006 | 4.7% | 35.1% | ✓ |
2007 | -0.4% | -15.7% |
|
2008 | -4.9% | -37.7% |
|
2009 | -4.3% | 28.0% | ✓ |
2010 | -1.3% | 28.0% | ✓ |
2011 | -2.4% | 8.3% | ✓ |
Average return | 3.3% | 14.2% |
|
# of losing years | 5 out of 21 | 4 out of 20 |
|
Average losing year | -2.7% | -18.9% |
|
Annual Return Differences:
U.S. Stocks vs. Med-Term Bonds vs. REITs [2002–2011]
| 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 |
U.S. Stocks | -21% | 32% | 12% | 6% | 15% | 6% | -37% | 29% | 15% | 2% |
U.S. Bonds | 10% | 4% | 3% | 2% | 4% | 7% | 5% | 5% | 6% | 8% |
REITs | 4% | 36% | 33% | 14% | 36% | -18% | -39% | 28% | 28% | 8% |