A real estate investor warns that the United States is entering the “greatest” correction of his lifetime

Real estate

By Alicia Warren, Daniela Genovese and Eric Revell of Fox Business

One real estate investor is witnessing the beginning of the “greatest” correction the sector has ever seen.

“I just want to say we’re entering the biggest real estate correction of my lifetime,” Grant Cardone, a private equity fund manager, told FOX & Friends on Thursday while discussing the state of the industry.

“that it [real estate correction] It will be a great opportunity for individuals and ordinary people to acquire luxury real estate from institutions. “This has never happened in the country,” Cardone said.

He expressed his belief that “it will be on epic levels.”

Although Cardone claims the industry is entering new territory, the current housing market presents significant issues for any buyer or seller as interest rates and housing costs remain high.

As sellers stay out of the market, low inventory exacerbates the problem and causes home prices to rise.

“People can’t own a home today,” Cardone stressed, blaming the Federal Reserve for killing the housing market “single-handedly” by raising interest rates.

“Hey [Fed Chairman Jerome Powell] It did not control inflation. He failed miserably. “What he actually did was create the housing industry, and in the process shut it down,” the real estate investor said.

To revive the housing industry, Cardone urges Powell to “stand aside” and let the market correct itself.

“Interest rates have to go down for prices to go down. This is actually a contradiction to what most people think. But when interest rates go down, mortgage applications will go up and people will start selling their homes.”

As first-time buyers’ dreams of owning a home have been halted by rising costs, those who rent are experiencing similar economic pain.

Moody’s Analytics found that in the third quarter, the rent-to-income (RTI) ratio in the United States fell slightly by 0.5% and ended at 30% – a level that represents the threshold for rent burdens.

Tenants are considered “burdened” if their rental payments consume 30% or more of their gross or pre-tax income.

““The Fed is going to have more renters in this country in the next two years than it has in the last 50 because mortgage applications are at all-time lows,” Cardone said.