Real Estate Investor Warns US Is Entering Greatest Correction of His Lifetime

Well, if I"m reading this correctly ... this real estate investor feels that the real estate bubble is going to burst and there will be a 'correction' of the market. I was looking at real estate in different parts of the country yesterday - we are getting ready to retire and want to move away from the city - and it was all too expensive for us. I couldn't believe the prices. I don't know how anyone can afford a home - be it a stand alone house, condo, town home. It looks like we are going to have to stay in the city and live where we do, and be grateful that we have a roof over our heads.

Anyways ... housing market bubble may be popping. Real estate values may be going down. That's good for buyers. Bad for sellers and owners.

Real Estate Investor Warns US Is Entering Greatest Correction of His Lifetime

One real estate investor is bearing witness to the start of the industry’s “greatest” correction he’s ever seen.

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

“It’s [real estate correction] 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 said.

“It’s going to be at epic levels,” he expressed.

Despite Cardone’s claim that the industry is entering new territory, the current housing market poses significant issues for any buyer or seller as interest rates and housing costs remain heightened.

We will all own nothing and LOVE IT!


or else

a reply to: FlyersFan

it all looks very familiar to 2008. If you remember what happened, the prices dropped, then the foreclosures happened, then the market was flooded with properties, which supply and demand attacked with it's normal vigor. I was one who didn't read the signs and invested a good bit in a "what could possibly go wrong" scenario. I found out. Had I been smarter, I would have sat on my investment cash and pounced when the correction came.

The sticky part is if you have a home now you plan to sell, it's time to sell NOW, but it's not time to buy. If I was where I am now, and I had to sell, I would have bought a small bit of land and put a trailer on it to live in for a couple years to ride out the worst of the storm, then pick up exactly what I wanted at a bargain and rent the trailer. I was lucky enough to recover with a sweet bit of land, and fixed up an old house to be exactly what we wanted, and short of getting a beach property, we aren't making any changes. And the beach property will have to wait for this inevitable correction.

originally posted by: network dude
a reply to: FlyersFan
it all looks very familiar to 2008.

That's what I was thinking. When I was looking online yesterday at realtor.com .. the prices were so bad I don't know how anyone can afford a home unless they are a two income family - with college degrees and professional jobs - and no kids. Seriously.

2008 ... yeah.

a reply to: FlyersFan

That's good for buyers. Bad for sellers and owners.

Good. The prices are bogus anyways. In my area, property values tripled in the last 3 years. Making it absolutely unaffordable for the common person.

No one should have a property triple in value in 3 years time, without doing any improvements.

I do not feel bad for the sellers whatsoever.

a reply to: FlyersFan

my son is about to get out of the military and move somewhere. He rarely does exactly what I tell him to, but on this one, I'm going to push hard for him to do my idea, and put a trailer on my back 40 and ride this mess out. it's not time for a first time buyer to enter the market. They would be slammed with ROI massively negative.

If his predictions happen then if I sell my home for much less then the next home I purchase, I can purchase for much less. To me this evens itself out.

I know a person who has been here from Argentina on work visa for over 10 years and he is moving back because he cant afford to feed and house his family here anymore.

the currency itself is hosed, this will be bad for everyone but only because the underlying system is failing.

if housing is the only market to crash, we'd be lucky kicking the can down the road again... but sooner or later, it's all falling apart.

the US government has their fingers in so many markets- we haven't seen capitalism in decades. They bail out the banks because the currency is corrupt- they bail out some automotive industries because they can't compete with the imports.

originally posted by: FlyersFan

Anyways ... housing market bubble may be popping. Real estate values may be going down. That's good for buyers. Bad for sellers and owners.

Trying to sell a house right now. I'm also renting for the next 2 years to see where this all goes.

Many of us expected a correction already.

Instead we've seen a drastic increase in interest rates and only a slight drop in prices.

A massive correction could be in the cards, but I would expect deflation along with it, and here are some reasons why.

1. China is starting to see deflation

2. How's that saying go? First by rapid inflation, than by rapid deflation...

3. GESARA/NESARA are hoaxes. $34 trillion in debt isn't going anywhere, and I doubt countries will be allowed to "print" their way out of their commitments.

All this means is that the repercussions of decades of bad decision making, are going to hurt.

originally posted by: quintessentone
If his predictions happen then if I sell my home for much less then the next home I purchase, I can purchase for much less. To me this evens itself out.

I'm trying to sell my house to keep some equity and then I can roll it into the next house after a bubble. Right now I have about 500k equity, but the interest rates are not helping. I think in January if I haven't sold yet I'll use some of my equity to buy down a buyer's interest rate. Bad time of the year too, but I'm pushing 5500 a month in rent and mortgage right now, and that kind of sucks.

a reply to: Xtrozero

Well, If I understand all this right ... you are doing the right thing.
Sell now while artificially high.
Rent.
Buy later after the bubble bursts.

originally posted by: KKLOCO

I do not feel bad for the sellers whatsoever.

Because you are not trying to sell...lol

originally posted by: FlyersFan
a reply to: Xtrozero

Well, If I understand all this right ... you are doing the right thing.
Sell now while artificially high.
Rent.
Buy later after the bubble bursts.

Still need to sell. I changed jobs and moved from the West Coast to the East Coast, so that was the real reason to sell, but I'm not looking too fast to buy again.

originally posted by: Xtrozero

originally posted by: quintessentone
If his predictions happen then if I sell my home for much less then the next home I purchase, I can purchase for much less. To me this evens itself out.

I'm trying to sell my house to keep some equity and then I can roll it into the next house after a bubble. Right now I have about 500k equity, but the interest rates are not helping. I think in January if I haven't sold yet I'll use some of my equity to buy down a buyer's interest rate. Bad time of the year too, but I'm pushing 5500 a month in rent and mortgage right now, and that kind of sucks.

Wow that mortgage amount is brutal.

I intend to lower the price of my home in the Spring and have it in a 'nothing to do' state for the new buyer.

I'm eyeing homes that have been on the market for a long time because negotiating a lower price may be more likely and the savings will allow me to do a few renos I have in mind, so my choices of homes increases.

Also I keep hearing rumors of 2024 being the year the interest rates will begin be lowered. Here's hoping for that to happen because it will stimulate home buyers to jump into the market.

originally posted by: quintessentone

Wow that mortgage amount is brutal.

It is 2400 mortgage and 3100 rent at the same time, oh and 600 rent for one kid in college and about 800 for the other, so I'm actually like 6900 per month, I also love my 7000 a year insurance bill on 4 cars with two boys in their early 20s.

I intend to lower the price of my home in the Spring and have it in a 'nothing to do' state for the new buyer.

I recently lowered my house from 1,050,000 to 975,000.

Also I keep hearing rumors of 2024 being the year the interest rates will begin be lowered. Here's hoping for that to happen because it will stimulate home buyers to jump into the market.

Feds said they are done with increases and starting about April they are looking at reducing. That is why the stock market hit an all-time high last week. That is good news as people can buy today at a higher rate knowing shortly they can always refinance free to a lower rate. I bought my house in 2010 at 4.5% and now it is 2.3% with 3 refinances that cost me nothing.

There is also a program that I can spend 3% of the value of my house and buy down an interest rate of 1.5 to 2% less for a buyer, so I'll look into that too.

originally posted by: Xtrozero

originally posted by: quintessentone

Wow that mortgage amount is brutal.

It is 2400 mortgage and 3100 rent at the same time, oh and 600 rent for one kid in college and about 800 for the other, so I'm actually like 6900 per month, I also love my 7000 a year insurance bill on 4 cars with two boys in their early 20s.

I intend to lower the price of my home in the Spring and have it in a 'nothing to do' state for the new buyer.

I recently lowered my house from 1,050,000 to 975,000.

Also I keep hearing rumors of 2024 being the year the interest rates will begin be lowered. Here's hoping for that to happen because it will stimulate home buyers to jump into the market.

Feds said they are done with increases and starting about April they are looking at reducing. That is why the stock market hit an all-time high last week. That is good news as people can buy today at a higher rate knowing shortly they can always refinance free to a lower rate. I bought my house in 2010 at 4.5% and now it is 2.3% with 3 refinances that cost me nothing.

There is also a program that I can spend 3% of the value of my house and buy down an interest rate of 1.5 to 2% less for a buyer, so I'll look into that too.

I expect 2024 rates to be continually lowered so I'll go for a variable rate when I get my new mortgage. Fingers crossed.

Biden iss assisting in creating this bubble by financially helping homebuyers procure a house even though the high interest rates aren't sustainable, just like happened under Obama's administration where nearly everybody qualified for a home they couldn't possibly afford to pay for.

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This is how you create a bubble, and as home owners default large realestate corporations are buying the property for pennies on the dollar and turning them into rentals-where they can name the price.

Every seemengly insignificant step is putting more and more of the American economy into the hands of government and large corporate control. The government controls these corporations and the corporations control government policy; the money goes back and forth between the two, leaving less in the hands of citizens.

I think most people would be shocked to know how little of America they really own; most of the land and busnisses are owned by the federal government, large corporations and foriegn entities.

We alos have another banking failure coming, along with auto manufacturing. The bailouts are going to be horrendous in the coming years for all of the 'too big to fail' groups.

According to Zillo in the last 30 days I have lost

Last 30-day change
- $3,252 (-1.8 %)

Thats alot to lose in 30 days

I thought interest rates where coming down in 2024 so home value would rise .