Jeff Greene is a billionaire real estate investor warning that we are in the “first inning” of the real estate market crash and correction. In an interview with CNBC, Greene warned that more price declines and prices cuts will come to both the residential and commercial real estate markets. Billionaire real estate investor Jeff Greene is warning that the problems facing the US real estate market are just beginning. In his words, we are only in the quote “first inning” of this downturn. Greene is one of the most successful real estate investors ever, with a networth of a staggering $7.5 billion. That is why it got my attention when in a recent interview he went as far as to say that certain pockets of the real estate market will soon become completely worthless.
Jeff Greene became a billionaire by buying credit default swaps on subprime mortgage-backed bonds as the housing market crashed.
Real estate prices are determined by an economic concept known as supply and demand. To demonstrate supply and demand in action, let’s use an area of the real estate market that is extremely topical right now. Commercial office buildings. Prior to 2020, the demand for commercial office space had been increasing at a relatively constant rate for decades. Of course, things could fluctuate in any given year based on the health of the economy. However, the long term trend was that more office space was needed. This was really driven by two major factors. The first is the growth of the working age population in the United States. At the same time, the supply of office buildings was not able to fully keep up with this growing demand. A lot of that had to do with the geography of many major cities. This is why office buildings in cities like New York were considered some of the absolute safest real estate investments in the world. But oh boy do things change. The rise of remote work has fundamentally altered the supply and demand equation. Companies simply do not need anywhere close to the amount of office space they once did. This has caused the demand line here to dramatically shift back to the left, likely permanently.
*Disclaimer: Neither this video, not any content produced on this channel should ever be considered investing advice or official financial advice. All content is made for entertainment and educational purposes.
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By: Investor Center Title: We are in the "First Inning" of the Real Estate Crash - Billionaire Real Estate Investor Sourced From: www.youtube.com/watch?v=BQ3niGn8-Ro
