real estate
One real estate investor is witnessing the beginning of the industry’s “biggest” correction ever seen.
“All I’m saying is we’re entering the biggest real estate correction of our lifetime,” private equity fund manager Grant Cardone said Thursday, speaking about the current state of the industry. He told Friends.
“the [real estate correction] This will be a great opportunity for individuals and the general public to actually acquire trophy real estate from institutions. This has never happened before in this country,” Cardone said.
“It’s going to be on an epic level,” he said.
Despite Cardon’s claims that the industry is entering new territory, the current housing market poses significant challenges for both buyers and sellers, as interest rates and housing costs continue to rise.
Inventory shortages exacerbate the problem as sellers stay away from the market, leading to higher home prices.
Cardone blamed the Federal Reserve for “singly-handedly” destroying the housing market by raising interest rates, but stressed that “homeownership is something people can’t afford today.”
“he [Fed Chairman Jerome Powell] Inflation has not been suppressed. He failed miserably. What he actually did was create the housing industry and then shut it down in the process,” said the real estate investor.
To revitalize the housing industry, Cardon is urging Powell to “take a step back” and allow the market to correct itself.
“In order to bring prices down, interest rates need to come down too. This actually contradicts what most people think. But when interest rates go down, mortgage applications increase and people sell their homes.” We’re going to start,” Cardon told co-host Rachel Campos-Duffy.
Those living in renters are experiencing similar financial pain, as first-time buyers’ dreams of owning a home are thwarted by high costs.
According to research by Moody’s Analytics, the U.S. rental income ratio (RTI) fell slightly by 0.5% in the third quarter, ending at the rent burden threshold of 30%.
A landlord is considered “burdened” if their rent payments consume more than 30% of their gross or pre-tax income.
“Cardone said the country will have more renters in the next two years than in the past 50 years, as mortgage applications are at record lows.
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