Investors have continued to drag the Goodman Group (ASX: GMG) share price lower since the beginning of the new year.
The real estate investment trust (REIT) hit an all-time high of $26.96 on 30 December, before sinking 15% in 2022.
At the time of writing, Goodman shares are hovering 0.79% lower to $22.64.
What happened to Goodman shares?
Despite keeping a quiet front for the past couple of months, Goodman shares have backtracked to September 2021 levels.
Listed as the ASX's largest REIT, the property company specialises in the logistics and business space. This includes warehouses, large scale logistics facilities, business and office parks across 5 continents in 14 countries.
A catalyst for the recent downturn could be attributed to investors selling off high-valuation companies during 2022.
The S&P/ASX 200 Real Estate (ASX: XRE) has shed around 10.72% in 2022, impacted by an uptick in inflation.
Data from the Australian Bureau of Statistics showed that the consumer price index (CPI) rose 1.3% in Q4 2021. When looking at the last 12 months, this figure rose 3.5%, the fastest annual pace since 2014.
The report highlighted the rising cost of living, which is affecting spending habits along with downward pressure on city rents.
The Reserve Bank of Australia advised it will make at least two rate hikes in 2022. The government body noted that inflation was not yet a problem for Australia compared to levels recorded in the United States.
Is now the time to buy?
Late last month, JPMorgan weighed in on Goodman shares.
The broker raised its 12-month price target by 4.2% to $25 for the REIT. Its analysts believe that there is still more upside in Goodman shares regardless of its mixed performance recently.
Based on the current share price, this implies an upside of about 10.4% for investors.
Goodman share price review
Over the last 12 months, Goodman shares travelled higher until the end of 2021 before tumbling in the new year. Nonetheless, the company's shares are up almost 27% since this time last year.
Based on today's price, Goodman commands a market capitalisation of roughly $42.3 billion, with approximately 1.87 billion shares outstanding.
