$XLRE - Double top forming?

There is a big debate in what is going on in real estate. It is hard for me to imagine a scenario in which this has not peaked. However, I do not believe we will see higher rates until 2023 and that means we could continue to see it moving higher. The issue comes back to the supply and demand. Demand is still ridiculously strong. Big institutions have purchased a ton of homes over the last 12-18 months thanks to the Federal Reserve and their easy money policies. Zillow dumping thousands of homes back onto the market is the first sign of what is to come if inflation is not transitory and the federal reserve has to start increasing rates. This is entirely caused by the government but I am sure they will shift blame onto something else.

This is not a recommendation to buy or sell. It is for informative purposes only.