Drive around a little and look what is built, what is for rent and it looks sickly. Then assume financing is tight and might not be there to refinance projects and I think it is close to a fair price at 35. Get around the corner and look at the inflation side and we could get a double and then some. There has never been a country that has paid off its wars with non inflated currency.
VNQs tie-in to the over all housing market is not as direct as the rate of year-over-year housing prices. Let's assume people need somewhere to live and their home is in foreclosure. Most likely they aren't going to buy a house for some time so they move to an apartment. This is going on en masse all over the country. The market is currently being ruled by emotions more than market value (although one must be quite awed at the level which emotion can over awe underlying value). Personally I think VNQ is well diversified, well priced (better today), and with a solid return and long term favorable fundamentals. If I were you I would dollar-cost-average myself a little now, and perhaps a little more later.
I'm in at 50 or below for two reasons. Its almost certain to test that low. Second, this is a great ETF for the long haul. As to why its going down look at a chart over three years and realize that what goes up.... and the economy drives the stocks owned by this pup.
I am amazed that some people think that God has given them abilities beyond those of mortal men. For example this man says you WILL have another 20% drop to deal with. I ask myself HOw does he KNOW this??? Truth is He doesn't.
Don't pay attention to any of these idiots. No ONE and I mean NO ONE KNOWS what the market is going to do within the next year.