Real Estate Expert Warns Of Unprecedented Market ‘Correction’

According to private equity fund manager Grant Cardone, the real estate industry is on the cusp of a significant correction. In a recent interview with “FOX & Friends,” Cardone boldly stated that we will witness the most critical real estate correction of our lifetime. While this might sound alarming, Cardone sees it as an incredible opportunity for everyday individuals to acquire trophy real estate from institutional investors. This phenomenon, he claims, has never occurred before in our country.

Cardone predicts this correction will reach epic levels, presenting a unique opportunity for aspiring homeowners and investors alike. However, it’s crucial to acknowledge the challenges plaguing the housing market. High interest rates and soaring housing costs have become significant obstacles for buyers and sellers. Additionally, the scarcity of available properties exacerbates the problem, driving higher home prices.

The private equity fund manager places the blame squarely on the Federal Reserve, accusing them of single-handedly damaging the housing market with interest rate hikes. Cardone argues that the Fed has failed to control inflation, hindering the industry. He even called Fed Chairman Jerome Powell to step aside and allow the market to correct itself.

To Cardone, the solution is clear: interest rates must decrease for pricing to become more affordable. Contrary to popular belief, lowering interest rates will increase mortgage applications and more motivated sellers. This, in turn, will revitalize the housing industry and provide relief for first-time buyers who have been priced out of the market.

The lofty expenses associated with owning a home have thwarted the aspirations of numerous prospective buyers, but renters, too, grapple with economic challenges. Moody’s Analytics reports a slight dip in the U.S. rent-to-income ratio (RTI) during the third quarter, reaching a point of 30 percent. Crossing this threshold designates individuals as rent-burdened, indicating that 30 percent or more of their gross income is allocated to rent payments. Regrettably, Cardone anticipates that the Federal Reserve’s interventions will contribute to a surge in renters over the next two years.