Grant Cardone Predicts Significant Real Estate Correction
Renowned real estate investor Grant Cardone has forecasted what he describes as the most substantial real estate correction in his lifetime in the United States.
He believes this correction will open doors for individuals and families to make notable real estate investments.
Market Challenges and Shifting Opportunities
The housing market’s soaring prices and increased mortgage costs have posed significant challenges for both sellers and buyers. However, Cardone suggests this scenario is on the brink of change.
The Scope of the Correction
According to Cardone, the impending correction won’t significantly impact single-family homes but will notably affect offices and apartments. He sees this as an unprecedented chance for regular individuals to acquire prime real estate from institutional entities.
Current Market Dynamics and Renting Trends
Cardone highlights the current unaffordability of homeownership, leading people to favor renting due to its cost-effectiveness, reduced insurance fees, and superior amenities in purpose-built rental spaces. He points out a shift towards the US becoming a ‘renter nation.’
Factors Impacting the Housing Market
Cardone attributes the decline in the housing market to the actions of the Federal Reserve, particularly the rise in interest rates under Fed Chairman Jerome Powell’s leadership. He contends that this policy has adversely affected the housing industry.
Recommendations for Revival
To revitalize the industry, Cardone urges the Federal Reserve to step back and let the market operate more freely. He believes that lowering interest rates will encourage increased mortgage applications and trigger a rise in home sales.
Market Indicators and Trends
Recent indicators show signs of a market shift. Manhattan rents experienced their first decline in over two years due to increased vacant apartments. Additionally, a report from Redfin noted a significant drop in rents across the US market, driven by a surge in vacancies.
Mortgage Rates and Affordability Challenges
While mortgage rates continue to climb, reaching an average above $2,500 for the first time, the affordability of homeownership has become a significant concern. Monthly principal and interest payments now demand around 41 percent of the median household income, a considerable increase compared to the historical average of less than 25 percent over 35 years.
Breaking News
Mine Crypto. Earn $GOATS while it is free! Click Here!!