Originally Posted by
JohnnyTheHorse
I sold all long term holdings in the retirement sector and REITs when yields were spiking and it became apparent that inflation wasn't quite so 'transitory'. My opinion is that by far the largest influence of property prices is the cost and availability of credit. We have both of these things going against property at an extremely rapid pace. A 20%+ correction in property prices in the next 12-24 months is a very credible scenario, however it'll come down to what happens with inflation. Best case scenario for property is higher rates cause recession, inflation eases and rates are lowered again. The worst case is that we enter recession and inflation is persisting.
I believe fund managers are reweighting their portfolios to lower exposure to property stocks. With the risks and uncertainties I'm much more comfortable sitting on the sidelines until this plays out further.