Veteran strategist Chris Vermeulen, of The Technical Traders, believes he is witnessing troubling signals in the market, noting how borrowing costs are expected to remain high for an extended period.

Vermeulen notes how building numbers for single- and multi-family homes have plateaued following a sharp decline last year, mirroring patterns last seen before the devastating 2008 housing crisis. 

Despite a recent stabilization in building activity, driven by increased investment, Vermeulen believes the real estate market is still at risk, particularly if mortgage rates continue to stay high.