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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28 Comments
I remember in 2007 when I was working in real estate seeing people buy homes new from builders with the intention of selling before close of escrow to a new buyer for profit. The crash was so brutal and fast that I remember seeing a lot of these units foreclosed on with the builder plastic still on the carpet.
https://www.youtube.com/watch?v=q3_CGSRrwAA
Do you recommend being a CRE broker in these times?
My homes value keeps declining.
Blood bath is coming for real estate. Commercial will bleed into residential and it’s happening already everywhere . The builders are the last leg and they’re starting to get smacked. I’ve been short in real estate starting a month ago in the stock market, DRV is moving fast a storm is coming
Home values are declining in every state
we need interest rates to go up to 11% to fix this whole mess that the fed created. … please please maybe 15% sounds better
Wow!
Could you explain how you calculated the monthly mortgage figures? They don't make sense
Thanks!
Thank you for your work and breaking things down the way you do. Blessings to you
I'm overjoyed that I made wise financial decisions that have permanently altered my course in life. I'm an American single mother who bought her second home at a very young age. If all goes as planned, I plan to retire at age 48.
Why have houses gone up 50% ever since Covid-19?
I'm favoured only God knows how much I praise Him, $230k every 4weeks! I now have a good house and can now afford anything and also support my family
Are you talking about Fair Oaks mall?
Question, Investor Center: is your narrator an actual person, or an AI voice?
Great! As they say, the time to buy is when there's blood running in the streets. Can't wait for the bottom of the 9th!
Awesome, thank you for the insight into current events a la real estate markets. It was an excellent blend of analytical commentary, explanation and examples. It's always a good idea to restate the basics to keep people grounded. Overall, this helps us stay focused on what is knowable and important.
unsub. click-bait fear mongering prostutute. Waste of my time.
Thanks for the video is great❤!! In order to know more about investing and finance, i know that you have a patreon where you share your knowlegde. Do you still use it ??
Excellent information and solid analysis!
One factor that drove the demand of office in New York was the destruction of the WTC towers. When new towers were built it it created an new supply but the demand had by then been met or diminished by work from home.
Top of the 1st
There is no way going from 2.65% to 8%+ doesn't break something. A $700,000 house at 2.65% is the same payment as a $400K at 8%.
There are so many companies who businesses just can't work remote do to what they do.
"Long term I love South Florida." brother, Florida will be underwater by the end of the century. You have one or two generations to get rid of everything you own down there
Very much appreciated, thank you 🙏🏻
0:14: 🏢 Real estate investor Jeff Green warns that certain pockets of the real estate market will soon become completely worthless.
3:54: ! Warren Buffett advises to buy great companies or properties at a fair price rather than fair properties at a great price.
6:55: 📉 The rise of remote work has caused a dramatic decrease in demand for office space, resulting in high vacancy rates and challenges in the commercial real estate market.
10:33: 🏢 The video discusses the contrast between Class A and Class C properties in the commercial real estate market, as well as the challenges faced by residential real estate.
14:04: 🏠 Home prices in the US have skyrocketed, with Florida being the epicenter of the housing market bubble.
Recap by Tammy AI