On The Market

Does a stock market crash affect real estate? We’ve seen home prices hit record growth over the past two years, with a slight slowdown happening right now. But nothing in the real estate market compares to the stock market selloff that has happened over the past six months. Index funds are down over twenty percent year to date, tech companies are quickly losing valuation, and the stock market doesn’t show any signs of slowing down. Is this an opportunity for real estate investors?Instead of letting landlords try to explain how equities work, we brought on Clay Finck from the Millennial Investing podcast to help educate us on what a good (or bad) buy looks like. Clay has spent years learning about value investing from the best stock trader of all time, Warren Buffett. He’s designed his portfolio to model the trading techniques Buffett engineered and thinks that this latest dip poses some interesting opportunities for investors of any asset class.Clay talks about recession-resistant stock picks, how to know whether a company is under or over-valued, and why stock investing could be a more passive alternative for the stressed-out landlord. We also have our panel of expert guests give their take on the stock market, how real estate investors should invest, and what their own portfolios look like. If you’re heavy on the real estate investing side of things, make sure you listen until the end, as there are some serious stock buying opportunities you may have never thought of.In This Episode We CoverHow the Fed influences the stock market through quantitative easing and rate hikesWhich stocks win during a recession (and which ones to stay away from)Dividend stocks and how to cash flow without owning any real estateDollar-cost averaging as a smarter way to invest even as prices fallWhether or not to put your money into the stock market to save for your next dealWhy some stock investors are ditching equities to make headache-free gains in real estateAnd So Much More!Links from the ShowBiggerPockets ForumsBiggerPockets AgentJoin BiggerPockets for FREEOn The MarketJoin the Future of Real Estate Investing with FundriseConnect with Other Investors in the “On The Market” ForumsSubscribe to The “On The Market” YouTube ChannelFind an Investor Friendly Agent in Your AreaDave’s BiggerPockets ProfileHenry's BiggerPockets ProfileJames' BiggerPockets ProfileKathy's BiggerPockets ProfileDave’s InstagramHenry's InstagramJames' InstagramKathy's InstagramGrab Your Ticket to BPCon 2022Which is Better? 145 Years of Real Estate vs. StocksGet Featured in Our “Crowd Source” Section by Posting on The BiggerPockets Forums“Millennial Investing" PodcastBook Mentioned in the ShowReal Estate 101 by Michele CaganConnect with Clay:Clay's TwitterCheck the full show notes here: https://www.biggerpockets.com/blog/on-the-market-19Interested 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

Short-term rental investing has been one of the most profitable, fastest-growing types of real estate investing strategies in decades. When the events of 2020 happened, most vacation rental owners thought that their passive income stream had been shut off, only for the exact opposite to happen in a big way. With low interest rates, investors were scooping up short-term rentals every second they could, and their occupancy rates just kept on increasing. But is all of that about to change?We’re back with another bonus episode of On The Market where Dave does a data-first deep dive into what’s happening with the short-term rental market. From occupancy rates to second home sell-offs, and hotels regaining their prestige—everything you wanted to know about vacation rental investing is packaged up for you in this short-term rental recap.Dave also gets into the recession data behind short-term rental investing and why some investors might be calling a quits too quickly. And even with interest rates rising, a buying opportunity may be on the horizon for investors who are fast enough!In This Episode We CoverWhether or not demand has stayed consistent as the economy enters into uncharted territoryHotels vs. hosts and which vacation stay is getting more popular over the next few monthsHow inflation is affecting the average American’s vacation budget and what that means for investorsSecond-home demand and why so many owners are looking to sellThe massive influx of new vacation rentals and the effect it's taking on occupancyAnd So Much More!Links from the ShowBiggerPockets ForumsBiggerPockets AgentJoin BiggerPockets for FREEOn The MarketJoin the Future of Real Estate Investing with FundriseConnect with Other Investors in the “On The Market” ForumsSubscribe to The “On The Market” YouTube ChannelIt’s Not Too Late to Join the Short-Term Rental Investing GameSign Up For the BiggerPockets Short-Term Rental BootcampAccess More Short-Term Rental Data with AirDNAWatch Tony Robinson’s Video on Short-Term Rental Investing in 2022Dave’s BiggerPockets ProfileDave’s InstagramCheck the full show notes here: https://www.biggerpockets.com/blog/on-the-market-18Interested 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

Will housing prices drop in 2022? There may seem like an obvious answer to this question, “of course with interest rates rising housing prices will drop.” But, that’s not exactly what the data shows, especially when you take into account that 2022 is not a normal housing market by any means. We had high demand, which is starting to cool, but housing prices are still far from affordable. And with so many homeowners enjoying huge equity boosts, is there even a possibility that foreclosures could fill the supply gap?Instead of postulating about what will or won’t happen, we brought on an industry expert who can give a data-first decision on which way the housing market will move. Rick Sharga, EVP of Market Intelligence at ATTOM, knows the data. He spends the majority of his waking hours scanning through copious amounts of housing market information so he can give investors and real estate professionals a true, unbiased opinion on what will happen next.Rick goes deep into demand, what’s causing it and whether or not it has been suppressed thanks to interest rate hikes. We also touch on the foreclosure “crisis” that never happened, how forbearance programs worked, and why we’re starting to (finally) see an uptick of foreclosures, many of which could make great investment properties. Lastly, you’ll hear why waiting out the housing market could be a move many investors shouldn’t make.In This Episode We CoverWhy interest rate hikes are affecting the housing market faster than we thoughtThe possibility of a housing market crash and what it means for investorsForbearance and foreclosures explained and what makes this market different from 2008“Emotional equity” and how it could keep home prices high for years to comeBuying rental properties at auction and what to know before you make a bidWhy waiting for lower homes prices could cost you tens of thousands moreAnd So Much More!Links from the ShowBiggerPockets ForumsBiggerPockets AgentJoin BiggerPockets for FREEOn The MarketJoin the Future of Real Estate Investing with FundriseConnect with Other Investors in the “On The Market” ForumsSubscribe to The “On The Market” YouTube ChannelFind an Investor Friendly Agent in Your AreaDave’s BiggerPockets ProfileHenry's BiggerPockets ProfileJames' BiggerPockets ProfileJamil's BiggerPockets ProfileKathy's BiggerPockets ProfileDave’s InstagramHenry's InstagramJames' InstagramJamil's InstagramKathy's InstagramGrab Your Ticket to BPCon 2022BiggerPockets Podcast 604ATTOM Insights for Real Estate InvestorsConnect with RickRick's LinkedInRick's TwitterCheck the full show notes here: https://www.biggerpockets.com/blog/on-the-market-17Interested 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

Everyone wants to know how to invest during a recession. We get it—things aren’t looking too good. Inflation is crossing all-time high territory, your rent is going up and so are interest rates, and many investors are wondering if a stock market crash is on the horizon. It’s normal to be scared, but it’s even smarter to do something while all the other investors are trapped in analysis paralysis. If you do want to invest, what should you do?We’re back with another bonus episode of On The Market where we’re tackling the not-so-simple question, “should I invest in 2022?” If you think a bunch of real estate investors are biased, you may be right, but we’d highly encourage you to listen to the very end of this episode, as each guest on our expert panel explains why they’re doing what they’re doing and why you should try it too.Recessions are traditionally when much of the population loses money, but it doesn’t have to be that way for informed investors. A world of opportunity is waiting for you, even if you have no money or experience going into this year. If you take what our expert guests say to heart, there’s a good chance you’ll not only make it out alive in 2022, but you’ll also have a lot more wealth than when you started.In This Episode We CoverJuly housing market updates and what has happened since the start of the yearIs the housing market starting to cool? And if so, what should investors do?How to start investing NOW and getting a real estate deal in the next thirty daysWhat to do if/when the housing market crashes (and how to profit from it)How to invest in 2022 and whether or not buy-and-hold rentals are still a safe betThe no-cash-needed way to start making money in real estate And So Much More!Links from the ShowBiggerPockets ForumsBiggerPockets AgentJoin BiggerPockets for FREEOn The MarketJoin the Future of Real Estate Investing with FundriseConnect with Other Investors in the “On The Market” ForumsSubscribe to The “On The Market” YouTube ChannelData DropJamil’s Appraisal RulesRent vs. Buy vs. House Hack CalculatorFind an Investor Friendly Agent in Your AreaDave’s BiggerPockets ProfileHenry's BiggerPockets ProfileJames' BiggerPockets ProfileJamil's BiggerPockets ProfileKathy's BiggerPockets ProfileDave’s InstagramHenry's InstagramJames' InstagramJamil's InstagramKathy's InstagramCheck the full show notes here: https://www.biggerpockets.com/blog/on-the-market-16Interested 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

Renting vs buying a house. It’s an easy decision. If you have the option to buy, you should buy. Shouldn’t you? That line of thinking, according to Ken Johnson, real estate economics expert, can cost you a lot of money. His team at Florida Atlantic University, along with other data–first economic experts, have spent a lot of time studying whether or not it makes more sense to rent or buy a home.Ken breaks down how most Americans have gotten the rent vs buy debate all wrong, how renters can beat homeowners to long-term wealth, and which housing conditions lead to better deals. We also bring in our expert panel of guests to get their take on whether or not owning is a smarter choice than renting. You’ll hear multiple opinions on how you can make a more lucrative decision on your first primary residence and whether being a “renter-landlord” makes sense in 2022.Surprisingly, in a time when more people are being forced into renting, Ken describes how “corporate landlords” could benefit the housing market, not deteriorate it. If you’re worried about the United States turning into a “renter nation”, Ken offers a glimmer of hope on why that may not be the case, and how even if it was, it wouldn’t be a bad thing.In This Episode We CoverRenting vs buying a home and which decision makes the most sense for you in 2022Which real estate markets are about to see wild price drops in the coming yearsThe housing affordability problem and why renting has become cheaper than owningWhether or not more corporate/Wall Street landlords is a good thing for rentersSubsidizing your mortgage/rent by house hacking or rent hackingHow renting and buying rental properties could be a win-win for average AmericansAnd So Much More!Links from the ShowBiggerPockets ForumsBiggerPockets AgentJoin BiggerPockets for FREEOn The MarketJoin the Future of Real Estate Investing with FundriseConnect with Other Investors in the “On The Market” ForumsTry The BiggerPockets “Rent or Buy Tool”Big Radius ToolBH&J Buy vs. Rent IndexTop 100 Housing MarketsWaller, Weeks and Johnson Rental IndexDave’s BiggerPockets ProfileDave’s InstagramHenry's BiggerPockets ProfileJames' BiggerPockets ProfileJamil's BiggerPockets ProfileHenry's InstagramJames' InstagramJamil's InstagramCheck the full show notes here: https://www.biggerpockets.com/blog/on-the-market-15Interested 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

The housing market is confusing, to say the least. In 2020, at the start of lockdowns, nearly everyone you spoke to had the opinion that the housing market was headed straight for a crash. Not only was this wrong, but it was the opposite of what the data was saying. While mainstream news outlets and “2008 crash bros” were painting a picture of foreclosures, price drops, and bottomed-out demand, Logan Mohtashami was singing a far different tune. Logan had been looking diligently at the data (like he does most days over at HousingWire) and he saw patterns that didn’t at all reflect the last recession. Instead, Logan predicted a runup in prices, hot buyer demand, and very low rates of foreclosures. In a time when almost everyone with a public voice was calling for an apocalyptic housing scene, Logan predicted much differently. Now, two or so years later, we can see just how right he was. We’ve brought this beloved data-first housing market deep diver onto the show to answer some of our most burning questions. Logan hits on how housing inventory got so low, what will force demand back down, why new property taxes are bad news for buyers, and the smartest move an investor can make in 2022. In This Episode We CoverHow to dig ourselves out of the housing inventory hole we’ve createdThe “forbearance” myth that most housing market forecasters missedWhy buying a home may be the smartest hedge against inflation of the decadeProperty taxes and why homeowners should (or shouldn’t) start to worry about themHousing markets to look out for that may see demand drop after huge appreciation pumpsWhy investors need to look at data “the right way” instead of relying on prominent internet forecastersAnd So Much More!Links from the ShowBiggerPockets ForumsBiggerPockets AgentJoin BiggerPockets for FREEOn The MarketJoin the Future of Real Estate Investing with FundriseConnect with Other Investors in the “On The Market” ForumsDave’s BiggerPockets ProfileDave’s InstagramKathy's BiggerPockets ProfileKathy's InstagramMortgage Applications Decrease in Latest MBA Weekly SurveyNearly 1 in 5 Sellers is Dropping Their PriceGet 50% off HousingWire+ Using Code “LoganVIP50"Is The Housing Market About to Collapse? What Investors Need to KnowConnect with Logan:Logan's HousingWireLogan's TwitterLogan's WebsiteLogan's InstagramCheck the full show notes here: https://www.biggerpockets.com/blog/on-the-market-14Interested 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

House flipping, rental property investing, wholesaling, and every other type of real estate investing has had an incredibly profitable run-up over the past two years. Days on market shrunk as buyer demand soared and supply dried up. Flippers, rental property investors, and everyone in between saw profit margins they couldn’t have imagined before. But, now that may all change.Rising interest rates have stopped many would-be homebuyers from making offers, forcing them back into renting instead of sending in over-asking bids. Now, home equity and flipping profits are starting to see a lag, as mortgage applications significantly slow down, showings become far less crowded, and price cuts become the new norm. Are we at the beginning of a real estate recession, and if so, how can we best prepare to still profit during the downturn?James Dainard, master flipper, investor, and “On The Market” guest, has had to readjust almost every way he analyzes real estate deals. He’s managed to cash in some serious flipping profits over the past two years but understands that this year will be different. He shares exactly how smaller landlords, real estate investors, flippers, and wholesalers can “pad their profits” so they don’t get burnt on their next real estate deal. In This Episode We CoverWhy price drops have doubled even though many homes are selling above asking priceSeller FOMO (fear of missing out) and why now may be a great time to find phenomenal dealsWhy cash flow has reemerged as the most important investing metric for rental property ownersThe 1% rule and why using it on every property could cost you money Readjusting your expectations as a flipper and how to “pad your profits” the right wayWhether or not you should “trade up” your rental properties to protect your portfolioAnd So Much More!Links from the ShowBiggerPockets ForumsBiggerPockets AgentJoin BiggerPockets for FREEOn The MarketJoin the Future of Real Estate Investing with FundriseConnect with Other Investors in the “On The Market” ForumsDave’s BiggerPockets ProfileDave’s InstagramMortgage Applications Decrease in Latest MBA Weekly SurveyNearly 1 in 5 Sellers is Dropping Their PriceConnect with James:ProjectRE with James DainardCheck the full show notes here: https://www.biggerpockets.com/blog/on-the-market-13Interested 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

Inflation and interest rates—two things we rarely talk about when the market is going smoothly. Just this week, the Federal Reserve made some stark moves surrounding interest rates with the hope of cooling down the rampant inflation we’re experiencing. But what exactly is causing all this inflation and are interest rates really going to change anything?Welcome to a bonus “On The Market” update from your favorite data deli nerd, Dave Meyer, who serves you fresh salami and cheese similes and turkey and mayo metaphors so you can know the housing market a bit better. This time, we’re talking about how inflation and interest rates rises could affect the housing market, what’s behind all the madness, and what it means for you, the local homebuyer or real estate investor.The recent updates from the Fed are BIG news, but they shouldn't worry you too much if you know the reasons behind their decisions. Staying ahead of the inflation curve can help put you in a position to build wealth, even when everyone else thinks the sky is falling.In This Episode We CoverInterest rate updates and why the Fed and Jerome Powell are making these drastic decisionsInflation explained and why we’re experiencing such high price surgesSupply and demand and how this lopsided duo is hurting the economyWhat would need to happen before a more normalized market comes aboutWhether or not an economic recession is around the cornerAnd So Much More!Links from the ShowBiggerPockets ForumsBiggerPockets AgentJoin BiggerPockets for FREEOn The MarketJoin the Future of Real Estate Investing with FundriseConnect with Other Investors in the “On The Market” ForumsDave’s BiggerPockets ProfileDave’s InstagramHow to Prepare for a RecessionOur Inflation Dilemma—What The Fed Won’t Tell YouThe Fed’s Plan for Future Interest RatesGet Housing Market Data from RedfinCheck the full show notes here: https://www.biggerpockets.com/blog/on-the-market-12Interested 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

Over the past two years, home prices have looked as if they’re never going to drop. With record-low interest rates, a newly formed remote work culture, and millennials at peak homebuying age, who would have thought that lower home prices would come so soon. Although traditionally affordable areas of the United State are still teetering on “overpriced” status, many high-priced markets are seeing negative population growth, and home prices are getting hit as a result.This is just one of the topics we touch on in our in-depth interview with Redfin’s Deputy Chief Economist, Taylor Marr. Taylor, like our own Dave Meyer, spends his days digging through the most important real estate data around. Whether it’s housing market updates, inflation and interest rate changes, or migration patterns, Taylor is on it long before you read one of his team’s excellent articles. As a key member of one of the leading companies distributing accurate, timely real estate data, he knows the housing market better than almost anyone else.Taylor’s insight is invaluable if you’re looking to migrate to a new part of the nation, invest in a new market, or debate whether or not to sell a property you own. He goes over supply and demand, how the “lock-in” effect has stalled the housing market, which real estate markets are primed for huge growth, and which could suffer serious financial fallout from a lack of homebuyers, renters, and demand.In This Episode We CoverWhat caused so many Americans to buy homes in new parts of the countryHow “cash-rich” homebuyers caused region-specific inflation in their areasThe migration patterns to pay attention to when analyzing a real estate marketWhich cities are primed for rent and home price growth, declines, or stagnationHow the “lock-in” effect is prompting more homebuyers to wait out the housing marketWhy we’ve started to see home sales decline as more homebuyers resort to rentingAnd So Much More!Links from the ShowBiggerPockets ForumsBiggerPockets AgentJoin BiggerPockets for FREEOn The MarketJoin the Future of Real Estate Investing with FundriseStay Up to Date on The Biggest Housing Market MovesInventory Shortage Could Continue As Interest Rates Rise and Homeowners Feel “Locked-In”What Can U-Haul Rates Tell Us About U.S. Migration Patterns?Connect with Other Investors in the “On The Market” ForumsConnect with Dave and Our Panel of GuestsDave’s BiggerPockets ProfileDave’s InstagramHenry’s BiggerPockets ProfileHenry's InstagramJames’ BiggerPockets ProfileJames' InstagramJamil’s BiggerPockets ProfileJamil's InstagramKathy’s BiggerPockets ProfileKathy's InstagramConnect with TaylorTaylor's LinkedInTaylor's TwitterCheck the full show notes here: https://www.biggerpockets.com/blog/on-the-market-11Interested 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

One man knows how to prepare for a recession arguably better than anyone else. He’s been able to build wealth during multiple different economic cycles, not only surviving but thriving in the process. With decades of experience in real estate investing, advising, and mentoring, J Scott, author of Recession-Proof Real Estate Investing, stands as a testament that not everyone gets washed away when an economic tsunami comes crashing down.We spend some time asking J about how we got to the current economic stage we’re in, what the economy looks like today, and how we can prepare ourselves for the future of high interest rates, falling asset prices, and real estate steals of the century. If you’re feeling anxious about investing in 2022, J Scott is the guest you should listen to. For our due diligence portion of the show, we’ll be asking James Dainard, Jamil Damji, and Kathy Fettke all about recession prep and rebalancing your real estate portfolio. While almost everyone in our expert panel has different advice for different investing strategies, they all agree on one thing: there is still plenty of money to be made in the realm of real estate!In This Episode We CoverEconomic cycles explained and why we may be “overdue” for a crashWhat causes inflation and why it manifests itself in rising interest rates How to prepare for a recession, even if you’re brand new to real estate investingWholesaling vs. flipping and which strategy will win during economic downturns Whether or not we’ll see home prices drop if a recession hits in the near future How to “rebalance” your real estate portfolio so you don’t catch a falling knife And So Much More!Links from the ShowBiggerPockets ForumsBiggerPockets AgentJoin BiggerPockets for FREEOn The MarketJoin the Future of Real Estate Investing with FundriseSeasonally-Adjusted Housing Data with RedfinGrab J’s Book “Recession-Proof Real Estate Investing” and Use Code “MARKETPROOF” at CheckoutConnect with Other Investors in the “On The Market” ForumsDave’s BiggerPockets ProfileDave’s InstagramHenry’s BiggerPockets ProfileHenry's InstagramJames’ BiggerPockets ProfileJames' InstagramJamil’s BiggerPockets ProfileJamil's InstagramKathy’s BiggerPockets ProfileKathy's InstagramBook Mentioned in the ShowRecession-Proof Real Estate Investing by J ScottConnect with J ScottJ's WebsiteJ's BiggerPockets ProfileCheck the full show notes here: https://www.biggerpockets.com/blog/on-the-market-10 Learn more about your ad choices. Visit megaphone.fm/adchoices