Job Numbers Turn Out to Be Overinflated, Will the Fed Make a Hard Pivot?

On The Market

BiggerPockets

Investing, News, Education, Business

4.8 • 858 Ratings

🗓️ 5 September 2024

⏱️ 45 minutes

🔗️ Recording | iTunes | RSS

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Summary

One startup is aiming to end traditional real estate commissions for good. Jobs numbers get their most significant downgrade in over a decade, forcing the Fed to rethink its rate-cutting schedule. And if that wasn’t enough, home sales fell in a historically hot month of the housing market. But are the expert investors worried? In this headlines episode, we’re sharing the latest news affecting the housing market and what YOU can do now to still make money in real estate, no matter the headline hype. First, we’re talking about the latest home sales numbers. With a slow summer homebuying season, we may return to a “balanced” market where investors can thrive if they know what they’re doing. What could bring more demand to the market? Lower mortgage rates. And with the latest revision on job numbers, downgrading job growth significantly, the Fed may be forced to pivot and make bigger moves when cutting rates. Will it happen? Lastly, we’ll discuss the new state of real estate agent commissions. After the groundbreaking NAR lawsuit that put agent commissions in limbo, a new startup has set out to offer flat-fee real estate agent services in an à la carte fashion. Will paying just a few hundred dollars get you the level of agent experience you need to close better real estate deals? We’re discussing it all in this episode! In This Episode We Cover The new real estate startup that could put traditional agent commissions in jeopardy What investors should know as home sales drop and whether it's an opportunity Planning for mortgage rates to fall and how to build in more investing upside if they do The latest job numbers REVISION putting our economy in a different spot than we thought Whether or not the Fed will change course now that job numbers don’t look as strong And So Much More! Links from the Show Join the Future of Real Estate Investing with Fundrise Join BiggerPockets for FREE Find an Investor-Friendly Agent in Your Area See James, Kathy, and Henry at BPCON2024 in Cancun! Henry's BiggerPockets Profile James' BiggerPockets Profile Kathy's BiggerPockets Profile The NAR Will Eliminate 6% Commission Standards and Pay $418 Million in Damages After Settling Lawsuit Two Things The Latest Home Sales Numbers Say About The Real Estate Market U.S. job growth revised down by the most since 2009 After winning a landmark case against real estate agents, this startup aims to replace them with a flat fee Economic Confidence Up Slightly in August Pre-Order Kathy’s New Book “Scaling Smart” Jump to topic: 00:00 Intro 01:15 Home Sales, Prices Drop 11:15 Planning for Rates to Fall 17:33 Job Numbers Get Revised 28:07 Agents Go Flat-Fee Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-249 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	Good news for mortgage rates, bad news for job numbers, and how the new NAR ruling is affecting agents and buyers. Today, we're reviewing the headlines.
0:15.0	What's up, everyone? Welcome to On the Market. If you're new here, I'm James Danardert, and I'm filling in for our host, Dave Meyer.
0:21.8	I'm here with my amazing co-host, Kathy Fecky and Henry Washington. How's everyone doing?
0:27.0	So good.
0:27.9	What's up, buddy? Glad to be here. How was the long weekend? Long?
0:33.0	I know for me. I always take the extra day on Labor Day to crunch out deals because no one else is
0:39.8	working. You would. So we get a lot of deal flow. So it's never a three-day weekend. It's a three-day
0:46.1	scramble to get more deals done. Well, I was on roller coasters with my grandson. So that's how I spent,
0:51.1	that's how I spent that day and missed all the deals that James got.
0:59.6	Well, today we're discussing the biggest headlines that will impact investors.
1:12.0	The latest data on home sales and mortgage rates and what's going on with the inventory that's starting to increase what the revised job numbers might mean for real estate and how a new startup is shaking the buyer-agent business in the real estate world in the wake of the NARA ruling.
1:15.7	All right, let's get into it.
1:17.0	Our first headline, two things that the latest home sale numbers say about the real
1:22.0	estate market.
1:23.3	I know over the past six months, we've been seeing this slow transition.
1:33.7	And I got to say, the Fed seems to have done their job fairly well over the last 12 to 24 months as much as people don't like to hear that.
1:35.9	But we've seen a transition in the market where home sales have plund 5.4% in June,
1:42.2	2024.
1:48.6	And we've now seen the median home price start to come down a little bit to 422,600, which is an over 1% drop from last month, but is still up 4.2% year
1:57.0	over year. And we're starting to see inventory increase. And this article kind of talks about
2:02.3	that as far as we are coming into a more balanced market. And, you know, I've been hearing from
2:09.0	all sorts of investors like, hey, there's something going on with the inventory. Things are
	...

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