A real-estate billionaire says there will be a 'major crash in the housing market' if the Fed keeps hiking rates. Economists say otherwise.
Barry Sternlicht, Chairman and CEO, Starwood Capital Group, speaks during the Milken Institute Global Conference in Beverly Hills, California, on May 3, 2022.and start reading now.Starwood Capital Group CEO Barry Sternlicht told CNBC the housing market could see a "major crash."
If the Federal Reserve hikes interests rates again, a drop in demand could lower home prices, he said.The head of one of the largest apartment landlords and major single-family rental owner thinks that the housing market is about to collapse. Barry Sternlicht, the CEO of Starwood Capital Group, on Thursday delivered a dire outlook on the US economy and housing market if the Federal Reserve maintains its aggressive monetary policy, including raising its benchmark rate. Housing prices could"correct," perhaps violently, he noted during a CNBC interview.The views of the billionaire investor vary from many economists that see a much more modest impact on housing, which has been buoyed by its low supply for years.
Sternlicht, whose Starwood Real Estate Income Trust owns more than $29 billion of real estate including residential, retail and hospitality properties, suggested that the Fed's current path was unnecessary given cracks already showing in the economy. "The economy is breaking hard," Sternlicht said in the CNBC interview."If the Fed keeps this up they are going to have a serious recession and people will lose their jobs.", which affects borrowing costs for both companies and consumers. The measures are aimed at cooling prices from the gas pump to the grocery store, though they risk backfiring if they cool demand too much.
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
New memoir tells the inside story of National Geographic's founding familyIn his new memoir, Gilbert Grosvenor, now 91, shares what it was like to grow up in the family business, and why the InsideNatGeo mission is more important than ever
Read more »
Is the housing market really crashing? Redfin’s chief economist shares her predictionsInflation is high and interest rates keep rising, leading to a lot of speculation about the housing market, with many throwing around the word “crash.”
Read more »
S&P 500 Futures differ from US inflation-led Wall Street slump, Treasury yields stay firmerS&P 500 Futures differ from US inflation-led Wall Street slump, Treasury yields stay firmer – by anilpanchal7 SP500 Futures YieldCurve Inflation Recession
Read more »
Home mortgage rates rise to 6% for first time since the 2008 housing crashThe interest rate hike threatens to sideline even more homebuyers from a cooling housing market.
Read more »
Ray Dalio says watch out for rates reaching this level, because Wall Street stocks will take a 20% hitThe Fed has no choice but to raise rates higher than the market expects, predicts billionaire investor Ray Dalio. Watch out stock investors.
Read more »