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Housing Continues To Deteriorate, Billionaire Grant Cardone and Chris is Planning to Invest
Episode 774th October 2022 • The Higher Standard • Chris Naghibi & Saied Omar
00:00:00 00:55:18

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As you can see from the collection of articles added below, the housing recession has finally reached a point where only the most oblivious could possibly claim that it's not happening. Despite the best efforts of the Fed to control inflation, jobless claims and mortgage rates are rising, and housing prices are falling. What does all this mean for the economy? Chris and Saied are here to offer some thoughts.

In today's episode of The Higher Standard, Chris and Saied take a look at all this new information to try and understand the economic implications of it all, starting with an article from CNBC stating that a new report from Redfin shows that home purchase cancellations are above 15% for the second straight month.


They discuss why the Fed's attempts to curb inflation seem to not be going well. The difficulty is that the primary method for curbing inflation - raising the Fed borrowing rates and pulling out liquidity with quantitative tightening - has an impact on earnings for corporations, which has its own implications.


Chris and Saied discuss a recent article from Bloomberg which states quite clearly that US housing prices have fallen for the first time since 2012, and one from Fortune, reporting that housing prices have plunged in 77% of US metro areas.  


They also discuss the many reasons to be wary of advice from people like Grant Cardone, and why Cardone Capital is not a real estate investment trust, but a long-term investment vehicle.


If you have burning questions about commercial real estate, this is the episode you've been waiting for! Join Chris and Saied for this fascinating conversation.


Enjoy!



What You’ll Learn in this Show:

  • The reasons why in August, 15.2% of home purchase agreements fell through, similar to 15.5% in July, according to a new report from Redfin.
  • Why the Fed's efforts to curb inflation has repercussions for corporations as revenue is drawn away, along with earnings.
  • Why 'The Turn has Finally Happened,' according to Fortune, while mortgage rates have hit 6.7%, the highest rate in two decades.
  • Some important considerations to keep in mind when listening to so-called "experts" like Grant Cardone.
  • And so much more...


Resources:

"Home Purchase Cancellations are Above 15% for the Second Straight Month." - article from Apple News

"US Housing Prices Fall for First Time Since 2012" - article from Bloomberg

"Housing Prices Plunge in 77% of U.S. Metro Areas: 'The turn has finally happened'" - article from Fortune

Original Research Article - AEI research document

"U.S. pending homes sales post third straight monthly decline in August" - article from Apple News

"'The Fed Trying to Control Inflation Actually Created More Damage': Grant Cardone Says the Fed Ended Most People's Chance of Owning a Home" - article from Yahoo! Finance

"Jobless Claims Hit Five-Month Low Despite Fed’s Efforts to Slow Labor Market" - article from CNBC

"US Mortgage Rates Jump to 6.7%, Hitting Highest Level Since 2007" - article from Bloomberg

"Meta is Reportedly Putting Some Workers onto a '30-Day List' that Gives them a Month to Find a New Role at the Company — or Leave" - article from Yahoo! News