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Real Estate ‘A Tremendous Buy’: CEO

Supply shortages and interest rates will continue to be positive for the real estate market, Colony Capital CEO Tom Barrack said Tuesday.

"Look, it's a tremendous 'buy,' he said. "The good news for the home builders is they start planning profitability five years ago."

On CNBC's "Fast Money," Barrack said that the market was still hot.

"Demand is exponential," he said. "Affordability at the entry level may get hit a little bit, but traditional rates on 30-year fixed-rate mortgage, which has been the best investment for Americans, has always been in the 6s for the last 10 or 15 years."

(Read More: Home Builder Confidence Soars to 7-Year High)

Interest rates on a 30-year fixed-rate mortgage were below 4 percent this week.

Barrack sounded bullish across the real estate spectrum.

"The supply is so dismal in every category, in every category of home building, in every category of rental," he said. "We bought 13,000 houses. We're renting them in 21 days."

Multifamily units were seeing rents higher by 15 percent over the last 12 months, he added.

As the rate of foreclosures on approximately 6 million homes in the United States speeds up, the demand for rentals for 6 million families would also rise, Barrack said.

(Read More: As Prices Rise, Banks Repossess More Homes)

"Housing today is not a bubble," he added. "There may be a bubble in the Fed, which is necessary to make what's happening happening, a slow, soft increase in jobs and predictability. Housing is the best buy for the average American because they can vote with their feet. You can get a Fannie or Freddie loan, even on a second house, and if you have a FICO score and a $20,000 down payment, you can be in business."

Trader disclosure: On June 18, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Steve Weiss is long ZTS; Steve Weiss is short ZTS Puts; Steve Weiss is short X; Steve Weiss is long C ; Steve Weiss is long BAC; Joe Terranova is long VRTS; Joe Terranova is long SJM; Joe Terranova is long AAPL; Joe Terranova is long SPLK; Joe Terranova is long GLD; Joe Terranova is long TBT; Joe Terranova is long SWN; Joe Terranova is long GOOG JUNE 870 PUTS; Joe Terranova is long GS JUNE 165 PUTS; Joe Terranova is short MINI S&P FUTURES; Simon Baker is funds long TWI; Simon Baker is funds long AAPL; Simon Baker is funds long BBY; Simon Baker is funds long CELG; Simon Baker is funds long GLW; Simon Baker is funds long XLF; Simon Baker is funds long F; Simon Baker is funds long GS; Simon Baker is funds long GOOG; Simon Baker is funds long MON; Simon Baker is funds long T; Simon Baker is funds long BAC; Simon Baker is funds long GE; Simon Baker is funds long IYM; Simon Baker is funds long JNJ; Simon Baker is funds long MSFT; Simon Baker is funds long MS; Simon Baker is funds long QCOM; Simon Baker is funds long DIS.

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