Still time to bet against XLRE
There is still plenty of downside on XLRE.
Interest rates are going to continue to drive demand down, combined with recession pressures and supply chain issues, the long term outlook on home is a huge crash and affordability issues in most major cities.
Even if rates return to an amicable percentage, inflation and supply chain issues will push new homes up higher, even in areas where supply is not a problem.
This is potentially a 5 to 10 year problem, even after rates, inflation, and supply chain issues are remedied, we will still be fighting for space in any major city where there is work.
Interest rates are going to continue to drive demand down, combined with recession pressures and supply chain issues, the long term outlook on home is a huge crash and affordability issues in most major cities.
Even if rates return to an amicable percentage, inflation and supply chain issues will push new homes up higher, even in areas where supply is not a problem.
This is potentially a 5 to 10 year problem, even after rates, inflation, and supply chain issues are remedied, we will still be fighting for space in any major city where there is work.