On The Market

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

Sep 5, 2024

A startup is revolutionizing real estate by challenging traditional commission structures, offering flat-fee services. Job growth numbers have been significantly downgraded, prompting the Fed to reconsider its rate strategies. Home sales are declining after a hot period, leading to a potential shift towards a more balanced market. With the right insights, investors can still capitalize in this evolving landscape, leveraging localized market data and innovative tools to navigate the changing dynamics of real estate.

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Quick takeaways

The recent drop in home sales and slightly decreasing median prices signal a shift towards a more balanced real estate market.

Job growth revisions indicate a need for investors to focus on local economic conditions rather than relying solely on national data.

Deep dives

Current Market Trends in Real Estate

Home sales have seen a significant decline recently, dropping by 5.4% in June 2024, with median home prices slightly decreasing to $422,600. This reflects a transition toward a more balanced market, moving away from the frenzy that characterized recent years. Increased inventory levels, now at four months of supply, suggest a normalization in the market dynamics. Investors are adapting by refining their strategies, recognizing that past practices may not yield the same success as before due to changing buyer behavior.

Intro

3min

Adapting to a Normalized Real Estate Market

6min

Navigating Local Real Estate Markets

6min

Navigating Real Estate Decisions Amid Economic Flux

14min

Navigating Federal Reserve Uncertainties

6min

Navigating New Real Estate Models

9min

Navigating Changes in the Real Estate Market

2min

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

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See James, Kathy, and Henry at BPCON2024 in Cancun!