On The Market

Recession Indicators Go Off, Is the Housing Market Safe?

Sep 2, 2024

The podcast dives into rising recession fears and the potential for a housing market crash. Top investors discuss the lessons learned from the 2008 financial crisis, exploring current economic indicators like unemployment and stock market declines. They analyze real estate trends, inventory levels, and the psychological impact of fear on buying decisions. Emphasizing cautious strategies, they highlight potential opportunities for investors, suggesting that the current market could present unique chances for growth if approached wisely.

48:27

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Quick takeaways

Understanding the difference between past recessions and the current market is crucial for investors to identify potential opportunities and risks.

Market fear significantly influences buyer and seller behavior, making it essential for investors to remain level-headed and rely on historical data when making decisions.

Deep dives

Understanding the Housing Market and Economic Recessions

The relationship between economic recessions and the housing market is complex and can vary significantly. While past recessions have resulted in a decline in housing prices, each recession has its unique characteristics. The podcast explains that a crucial difference between the current economic situation and the 2008 financial crisis is the absence of fundamental lending issues and unstable mortgage-backed securities today. An analysis of historical data indicates that most recessions do not negatively impact real estate values, suggesting that the current market may exhibit resilience despite fears of a downturn.

Intro

5min

Economic Indicators Point to Possible Recession

3min

Understanding Real Estate Trends Amid Economic Shifts

6min

Navigating Real Estate Through Recessions

15min

Navigating Fear in the Housing Market

4min

Navigating the Housing Market: Lessons from 2008

16min

Recession fears are increasing. The stock market has taken substantial hits, housing inventory is climbing, and bank account balances are starting to fall. So, with more economic turmoil, we have to ask: will the housing market crash? And if we get a housing market crash, how bad (or good) will it be for investors? Could we see a 2008-style selloff, or should we be more prepared for small dips worth taking advantage of? Today, we’re asking two top investors these questions, one of whom literally wrote the book on Recession-Proof Real Estate Investing.

J Scott and James Dainard join us on today’s episode to discuss market crash predictions, scenarios, and opportunities for real estate investors. Both J and James experienced the 2008 housing market crash—an economic event almost impossible to forget. But is 2024 shaping up for a sharp decline like 2008, or will we simply see a slower real estate market like most people had expected when interest rates began to rise?

If the market DOES crash, what should you look for to take advantage, and how do you ensure you don’t get caught biting off more than you can chew? J and James break down their game plans if prices fall and why buying now could set you up for wealth ten years from now, IF you can handle the “fear” of buying when others are running from real estate.

In This Episode We Cover

New housing market “crash” predictions and how low prices could go

Why economic “fear” is rising now, and the recession indicators that are going off

Rising housing inventory and why experienced investors expected this already

The difference between the 2008 housing market crash and today

What could cause a housing crash and how to know it’s time to buy

The immense opportunities for investors that 99% of Americans will pass up

And So Much More!

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