Above is an article from S&P/Cash-Shiller web site at http://us.spindices.com/index-family/real-estate/sp-case-shiller.
The article makes an interesting read. It proves statistically once and for all the following points that a lot of people intuitive know about residential real estate:
1. Residential real estate as an asset class produces lower long-term returns than stocks.
2. Residential real estate has lower volatility compared to stocks.
3. Residential real estate has low correlations with other asset classes such as bonds, stocks and commodities. This makes it a great addition to a portfolio as it lowers volatility at the portfolio level.
Do read it!