48: Why Volatile Housing Markets Are Looking Attractive to Investors

On The Market

BiggerPockets

News, Education, Business, Investing

4.8 • 858 Ratings

🗓️ 31 October 2022

⏱️ 52 minutes

🔗️ Recording | iTunes | RSS

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Summary

Today’s housing market has a lot of people scared, and investors are worried as well. Home prices are starting to slump, inflation is hitting decade-long peaks, and interest rates have turned everyone’s cash flow cushions into break-even deals at best. Is there any respite in the wild real estate market? And why do top investors seem so excited about it? We’re back on another correspondents episode of On the Market, where Professor Dave has asked students Henry, James, and Kathy to bring in their favorite real estate market news for show-and-tell. These stories hit different aspects of the housing market, showcasing the cracks forming in the overall economy and what investors need to be prepared for to react. We talk about how home flips are being discounted across expensive coastal cities, why rent price growth is starting to stall, and how buyers got their negotiation power back. We’ll also be touching on the recent inflation data, showing that we have a long way to go until we return to the good ol’ days of two-percent price growth. Then, we take a request from the On the Market Forums where we answer an age-old question: When should you sell a BRRRR property? All this, and more, coming up on this week’s data-first housing market deep dive! In This Episode We Cover Another nasty inflation report and what this could mean for the housing market Why flips are becoming riskier in today’s volatile market and how to prep for a profitable flip Rent growth data and which markets as seeing the strongest (and weakest) rent growth numbers in the nation Why buyers are asking for more repairs, bigger seller concessions, and lower prices When to sell a BRRRR property and using cash-on-cash return vs. ROE (return on equity) Fool-proof deal analysis and why investors need to be careful buying in 2022 and 2023 And So Much More! Links from the Show Find an Investor-Friendly Real Estate Agent BiggerPockets Forums BiggerPockets Agent 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 Jamil's BiggerPockets Profile Jamil's Instagram Kathy's BiggerPockets Profile Kathy's Instagram NPR Price Drops Redfin Rent Growth USA Today Punch List Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-48 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Buy low, sell high. Very easy to say, but not always so easy to do. For example, high interest
0:07.2	rates are hurting the real estate market right now. Demand is dropping and prices in a lot of
0:12.2	markets are falling, even for many of the best assets. So it's no wonder the Fundrise
0:17.3	Flagship Fund plans to go on a buying spree expanding its billion dollar real estate
0:22.7	portfolio over the next few months you can add the fundrise flagship fund to your portfolio in
0:28.9	just minutes and with as little as $10 by visiting fundrise.com slash pockets fundrise.com
0:35.7	slash pockets carefully consider the investment objectives,
0:39.5	risks, charges, and expenses of the Fundrise flagship fund before investing. This and other
0:44.9	information can be found in the fund's prospectus at fundrise.com slash flagship. This is a paid
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1:13.6	opportunity, we all know that having a top tier lender is one of the most critical things on your
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1:42.9	Apply now at BiggerPockets.com slash Center Street. That now at biggerpockets.com slash center street.
1:46.1	That's biggerpockets.com slash center street.
1:52.8	Hey, everyone.
1:57.7	Welcome to On the Market.
1:59.0	Today we have one of our correspondence or show and tell shows where our esteemed panel will be sharing what they're watching most closely in the market with you. Today, we have James Dainer with us. James, how are you?
2:13.0	Doing good. Just left a brutal meeting with the planning and clearing and grading in the city of Bellevue.
	...

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