217: Economic Pessimism Peaks, So Why Are Investors Still Buying?
On The Market
Introduction
Exploring the fallout of Redfin's settlement in a class action lawsuit, this chapter dissects the dynamics of the brokerage industry and predicts the potential effects on commissions amidst consumer skepticism and legal challenges.
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!
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Articles from This Episode:
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
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