217: Economic Pessimism Peaks, So Why Are Investors Still Buying?

On The Market

BiggerPockets

News, Investing, Business, Education

4.8 • 820 Ratings

🗓️ 16 May 2024

⏱️ 37 minutes

🔗️ Recording | iTunes | RSS

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Summary

The unemployment rate begins to rise as job growth slows in the latest jobs report, prompting many to wonder, “Will this finally lead to interest rate cuts?” With so many investors waiting and hoping for rates to fall, this metric may point to exactly what the Fed is looking for. But while waiting for rate cuts, investors could miss out on a huge opportunity to buy at discounted prices. If you’re sitting on the sidelines, you could be making a big mistake. What do we mean? We’re getting into it all in this headlines show! We’ve got four economic news stories to discuss today, ranging from Redfin’s $9.25 million settlement as part of the agent commission lawsuits to new jobs report numbers and what Americans really think about the economy. First, we’ll touch on Redfin news as the discount brokerage settles in what seems to be the never-ending NAR lawsuit. Next, Americans think now is the worst time to buy a house. Do we disagree? Not really! But, we do believe it could get even worse very soon for those who don’t buy before it’s too late. Next, we’ll review the latest jobs numbers, from rising unemployment to slowing growth, and whether this will prompt the Fed to finally cut rates. Lastly, we’ll hit on consumer sentiment and America’s growing economic pessimism. With so many Americans living in financial fear, why aren’t we seeing a drop-off in travel and consumer spending? If you’re listening to this episode on a plane to Europe with your designer bag and $500 headphones, we’re talking about you! Stick around as we break down the top economic headlines and their impacts on the housing market. In This Episode We Cover The latest agent commission settlement and the huge payout from Redfin Is now the worst time to buy a house, and what happens if home prices keep rising? The one type of real estate that may see a serious uptick in demand over the next few years New jobs report numbers and whether this could finally prompt the Fed to lower rates Consumer sentiment and the extremely confusing economic pessimism we’re seeing now Why you DON’T have to wait for rates to drop to get your next real estate deal 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 Henry's BiggerPockets Profile Henry's Instagram James' BiggerPockets Profile James' Instagram Property Manager Finder Grab Dave’s Rent vs. Buy vs. House Hack Calculator Articles from This Episode: Redfin Worst Time to Buy Jobs Report Consumer Sentiment Buy or Rent? Jump to topic: (00:00) Intro (01:13) Redfin Settles in Commission Lawsuit (06:03) Worst Time to Buy a House? (16:25) Job Growth Slows, Will Rates Drop? (27:47) Economic Pessimism Peaks Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-217 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Americans recently said that right now is the worst time ever to buy a house.
0:06.5	They're also not feeling very positive about the economy as a whole.
0:10.7	So the question is, how should investors interpret this information, this and more on today's
0:15.8	headline show.
0:27.0	Hey, everyone. I'm your host, Dave Meyer. And with me today are James Dainert and Henry Washington.
0:32.2	And we're doing one of our favorite formats for the on the market podcast, which is our headline show.
0:37.7	If you haven't heard this format before, this is basically where we go out. We pull four articles from the news cycle,
0:42.7	talk about the metrics, give you the details, what you need to know, and then give you our opinions about how this might impact your personal finance or your investing.
0:47.3	In today's episode, we're talking about Redfin's agreement to share data and settle a class
0:52.5	action lawsuit. How Americans think it's the worst
0:55.4	time ever to buy a home, recent jobs reports, and lastly, why consumers are feeling so bad
1:01.8	about the economy in general. That and much more in today's episode. Let's jump in to our first
1:08.0	headline. All right. So to our first headline.
1:14.2	All right.
1:20.3	So for our first story today, our headline reads, Redfin agrees to share data and pay $9.25 million to settle lawsuit.
1:24.5	This comes from the New York Times.
1:26.6	It's basically just a latest in a string of settlements
1:30.2	that are going on between plaintiffs and several different large brokerages. We've obviously
1:35.5	heard mostly about the NAR settlement and a couple of other big, I think, Keller Williams,
1:41.4	right, also settled. And so this is just the latest.
1:45.6	I still feel like things are unfolding.
1:48.1	And I don't know about you guys, but I personally feel like despite these settlements,
	...

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