BiggerNews: What Happens if the Housing Market Crashes (& What Will Cause It) w/J Scott

BiggerPockets Real Estate Podcast

BiggerPockets

Investing, Education, Business

4.8 • 16.6K Ratings

🗓️ 16 August 2024

⏱️ 50 minutes

🔗️ Recording | iTunes | RSS

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Summary

Recession fears are increasing. The stock market has taken substantial hits, housing inventory is climbing, and bank account balances are starting to fall. So, with more economic turmoil, we have to ask: will the housing market crash? And if we get a housing market crash, how bad (or good) will it be for investors? Could we see a 2008-style selloff, or should we be more prepared for small dips worth taking advantage of? Today, we’re asking two top investors these questions, one of whom literally wrote the book on Recession-Proof Real Estate Investing. J Scott and James Dainard join us on today’s episode to discuss market crash predictions, scenarios, and opportunities for real estate investors. Both J and James experienced the 2008 housing market crash—an economic event almost impossible to forget. But is 2024 shaping up for a sharp decline like 2008, or will we simply see a slower real estate market like most people had expected when interest rates began to rise? If the market DOES crash, what should you look for to take advantage, and how do you ensure you don’t get caught biting off more than you can chew? J and James break down their game plans if prices fall and why buying now could set you up for wealth ten years from now, IF you can handle the “fear” of buying when others are running from real estate. In This Episode We Cover: New housing market “crash” predictions and how low prices could go Why economic “fear” is rising now, and the recession indicators that are going off Rising housing inventory and why experienced investors expected this already The difference between the 2008 housing market crash and today What could cause a housing crash and how to know it’s time to buy The immense opportunities for investors that 99% of Americans will pass up And So Much More! Links from the Show Grab Chad’s Book, “The Small and Mighty Real Estate Investor” Join BiggerPockets for FREE Let Us Know What You Thought of the Show! Grab J’s Book “Recession-Proof Real Estate Investing” Find Investor-Friendly Lenders See Dave and James at BPCON2024 in Cancun! Why Has the Housing Market Not Crashed in Over 15 Years? (00:00) Intro (04:01) New Recession Fears (14:25) Is This Like 2008? (18:06) What Will Cause a Crash (31:11) What to Do During a Crash (36:56) Opportunity for Investors Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1005 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	You all know this, but there's so much crazy economic data right now.
0:04.4	You have to start wondering, are we going into a recession? Is the housing market going to crash?
0:10.0	Because there are a lot of pundits, economists, rogue
0:12.9	you tubers, and probably your crazy uncle who tells you not
0:15.8	to buy real estate, they're all saying
0:17.8	that another housing market crash is coming.
0:20.8	Maybe they cite high inflation or unstable geopolitics, the lack of affordable
0:25.4	housing, and they say that the crash is inevitable.
0:28.8	And while there is some merit to these arguments, the market, at least least to date has remained resilient. But the question
0:35.5	of whether you'll see a crash persists and it's an important question. So today we're
0:39.9	going to explore the idea of a crash in full detail.
0:43.4	What would have to happen for a crash to actually occur?
0:46.4	And is that likely?
0:47.5	And what would it mean for your business
0:49.3	if it comes to fruition. in the US that is starting to look more and more possible.
1:03.6	And we're going to discuss what the market might do right now
1:06.8	and how a recession may or not be connected
1:09.4	to a housing market crash.
1:11.2	We're also going to talk about what would need to happen for the
1:13.7	housing market to actually crash. To help me do this I'm bringing on two investors
1:18.7	James Dainerd and Jay Scott who had portfolios during 2008 and we're going to theorize game plan what it would take for the market to crash again and how that would impact investors, the housing market and the economy at large. But before we do that, I wanted to tell you a little bit about what actually happened in 2008 to ground our conversation, to provide a little bit of context, and help you fully understand the conversation
1:44.5	that Jay, James, and I are going to have. In 2008, the world witnessed one of the most
	...

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