On The Market

217: Economic Pessimism Peaks, So Why Are Investors Still Buying?

May 16, 2024

Discussing economic pessimism amidst investors still buying, job report impact on interest rates, Redfin settlement in agent commission lawsuits, Americans' reluctance to buy homes, rising unemployment and slowing job growth, consumer sentiment and spending behavior in a pessimistic economy

38:26

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Quick takeaways

Investors could miss out on opportunities by waiting for rate cuts, impacting market dynamics.

Americans pessimistic about economy despite high spending, highlighting concerns over inflation and debt costs.

Deep dives

Redfin settles class action lawsuit by sharing data and paying a settlement

Redfin recently settled a class action lawsuit by agreeing to share data and pay a $9.25 million settlement. Despite this settlement being part of a series involving large brokerages, including NAR and Keller Williams, the impact on individuals remains uncertain. The involvement of Redfin, known for its discount brokerage model, raises questions about how this settlement might affect market dynamics and commission structures.

Introduction

4min

Navigating the Fluctuating Real Estate Market

4min

Navigating the Current Real Estate Market

20min

Flipping Houses and Economic Sentiment

7min

Navigating the Conflicting Narratives of Economic Realities and Social Media

3min

Exploring the Benefits of Investing in Small Multi-Family Properties

2min

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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