Well, the OP asked a question where he's looking for a definitive "yes" or "no" answer. Unfortunately, there is no easy answer one way or the other. Where there is no consensus on predictions as to whether now is a good time to buy a certain asset class or sector, the OP may find it more profitable for the long run in his investments to get out of the guessing game forever. Then the OP can say, I don't know and I don't care, because his index owns them.
As per the real estate sector in XIC, Morningstar gives it an allocation of just over 4%. Adding the materials and energy sectors at the iShares site, I get a total allocation of 44%, plus let's not forget the financial sector at near 32%. The allocations to the various sectors in this index keep changing over the years. I can still remember back in 2000 when it was quite tech heavy. Of course, in the early part of that year a lot of people were asking if it was still a good time to get into technology stocks, another hot sector. Most of the experts were of course answering with an emphatic yes.
For an investment vehicle with a lot warts and imperfections, you would think at least the hard working, extremely intelligent professionals would be able to find a way to circumvent it, but instead it's the majority of the pros that keep getting clobbered by the TSX composite over the long run.