Real Estate Investor Predicts “Greatest” Correction Amidst Housing Market Challenges
Renowned private equity fund manager Grant Cardone has declared that the real estate industry is on the cusp of experiencing its “greatest” correction ever, presenting a unique opportunity for ordinary individuals to acquire trophy real estate from institutional players. Speaking on “FOX & Friends” on Thursday, Cardone outlined his views on the current state of the market and offered insights into the challenges and opportunities that lie ahead.
“This is going to be the greatest real estate correction in my lifetime,” Cardone declared during the interview. “It’s going to be a great opportunity for individuals, regular, everyday people to actually grab trophy real estate from institutions. This has never happened in the country.”
Cardone emphasized that the forthcoming correction would reach “epic levels,” positioning it as an unprecedented event in the history of the real estate market. Despite these bold claims, Cardone acknowledged the existing hurdles in the housing sector, including soaring interest rates and elevated housing costs.
“It’s unaffordable for people to own a home today,” Cardone asserted, attributing the current state of affairs to the Federal Reserve’s actions. He criticized Fed Chairman Jerome Powell, holding him accountable for allegedly hindering the housing market through interest rate hikes.
“He [Powell] has not controlled inflation. He has failed miserably. What he has actually done is created and, in the meantime, stopped the housing industry,” Cardone argued.
To revitalize the housing industry, Cardone called for Powell to “step aside” and allow the market to correct itself. He maintained that lowering interest rates is crucial for reducing housing prices, contrary to common belief. According to Cardone, lower interest rates would drive up mortgage applications and prompt homeowners to sell, ultimately alleviating the current shortage of housing inventory.
Addressing the struggles of first-time homebuyers, Cardone pointed out the challenges posed by high costs and urged a market-driven correction. Meanwhile, he warned that the Federal Reserve’s policies would contribute to an increase in renters over the next two years, as mortgage applications hover at historic lows.
As the real estate industry braces for what Cardone anticipates as a monumental correction, stakeholders and observers will closely monitor how the market responds to the evolving economic landscape.
