There's more pain coming for residential and commercial real estate as tight credit and job worries threaten property markets

• Residential and commercial real estate have more pain coming as financial conditions tighten, Wells Fargo said.
• Housing has been slammed by high mortgage rates, which have weighed on both demand and supply.
• Commercial real estate is struggling as work-from-home trends remain popular, the bank said.

There's more pain ahead for both the residential and commercial real estate market, thanks to a cocktail of bearish forces that are bearing down on both sectors, according to Wells Fargo.

"Our rating on the Real Estate sector remains unfavorable. Numerous headwinds have combined to make residential and commercial real estate investment unattractive based on our current analysis," senior global market strategist Scott Wren said in a note on Wednesday. "We expect that further deterioration of the underlying fundamentals is likely."