125: Is Buying a Bad Decision in 2023? w/Redfin’s Daryl Fairweather

On The Market

BiggerPockets

News, Education, Business, Investing

4.8 • 859 Ratings

🗓️ 24 July 2023

⏱️ 28 minutes

🔗️ Recording | iTunes | RSS

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Summary

Buying a home might not be the best idea in 2023. You’ll have to go through a few challenges to get one under contract. First, find a homeowner who wants to sell their home; you’ll need to convince them that ditching their low rate is worth the price. Then, secure funding; but with even the best home buyer loan, you’ll probably be stuck with a seven percent rate. Wouldn’t it be easier just to rent and invest the rest of your money? According to Daryl Fairweather, Ph.D., Chief Economist at Redfin, that’s precisely what you should do. New data has shown that with home affordability at historic lows, now isn’t the best time to buy a primary residence. But where would you find the inventory even if you wanted to buy? “Locked-in” homeowners are refusing to part ways with their properties, and nobody can blame them. But, there are still a few metro areas worth buying in, and if you live in, or are moving to, one of these areas, you could be in luck. But Daryl doesn’t just explain the buying vs. renting debate. She also talks about buyer demand and its recent drop-off, mortgage rate predictions and what we can expect rates to get down to, risky real estate markets facing natural disasters, and news for real estate agents that could change how commissions are paid and collected. In This Episode We Cover Renting vs. buying and which is a better bet in 2023 Affordability, buyer demand, and why renting may be the only option for many Mortgage rate predictions and how low rates could go in the near future Insurance headaches from California and Florida and why insurers AREN’T signing new policies Migration patterns and where Americans are moving as home prices remain high New real estate agent commission news that could change who pays an agent for buying or selling a property And So Much More! Links from the Show Find an Agent Find a Lender BiggerPockets Forums BiggerPockets Agent BiggerPockets Bootcamps Join BiggerPockets for FREE On The Market Join the Future of Real Estate Investing with Fundrise Connect with Other Investors in the “On The Market” Forums Subscribe to The “On The Market” YouTube Channel Dave's BiggerPockets Profile Dave's Instagram Get Access to Unlimited BiggerPockets Audiobooks and Ad-Free Podcast Episodes Renting vs. Buying a House: Which Makes More Sense Connect with Daryl Daryl Instagram Daryl LinkedIn Daryl Twitter Redfin News Click here to listen to the full episode: https://www.biggerpockets.com/blog/on-the-market-125 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	In a frequently shifting market, deciding how to invest can be overwhelming.
0:03.8	You need a partner that has a proven track record, BAM Capital.
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0:15.2	Bam Capital is a trusted multifamily syndicator with over $1.3 billion in transactions.
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0:34.2	biggerpockets.com slash BAM.
0:44.4	Buy low, sell high. Very easy to say, but not always so easy to do. For example, high interest rates are hurting the real estate market right now. Demand is dropping and prices in a lot of
0:49.4	markets are falling, even for many of the best assets. So it's no wonder the Fundrise Flagship Fund
0:55.6	plans to go on a buying spree expanding its billion dollar real estate portfolio over the next
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1:14.3	Carefully consider the investment objectives, risks, charges, and expenses of the Fundrise
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1:21.6	This and other information can be found in the fund's prospectus at fundrise.com slash
1:26.6	flagship.
1:27.4	This is a paid advertisement.
1:31.0	How high is the interest rate for the new Laurel Road high yield savings account?
1:37.0	This high. The air is really, really thin up here. The Laurel Road vary. High-ield savings account.
	...

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