On The Market

Real estate investing mistakes in 2023 cost hundreds of thousands; forgotten tax bills, landscaping debacles, and property manager failures. Expert guests share painful losses for entertainment. Learn what NOT to do in 2024, like waiting to pull permits and scaling too fast. Potential consequences of losing good reviews and bookings for short-term rentals. Importance of learning from past losses and dealing with tax implications. Personal experiences with financial losses and gratitude to the production team and sponsors.

Clayton Collins, HousingWire CEO, discusses the long-term housing market outlook, predicting an ongoing inventory shortage that could last decades. He examines the challenges of inventory shortages and high mortgage rates, explores real estate markets with potential price cuts, and highlights the potential for innovation in the industry.

Mortgage demand has fallen off a cliff, according to ICE’s recent Mortgage Monitor Report. With affordability hitting new lows and mortgage rates still rising, home buyers have simply given up on buying a house any time soon. Mortgage applications are now forty-five percent below pre-pandemic levels, and something BIG will have to change for buyers to jump back into the market—are lower home prices the answer?To explain the Mortgage Monitor Report’s most recent findings, we brought on ICE’s Andy Walden. Andy has the most recent home buyer, mortgage rate, foreclosure, and delinquency data to share. We’ll talk about the buying power that’s been wiped out of the market, why mortgage applications fell off a cliff, rising unaffordability and whether or not it’ll force foreclosures, and the real estate markets with the most potential for home price growth.Andy even gives his 2024 housing market forecast with some eerie warnings about what could happen to home prices as we reach an “inflection point” in the market and enter the traditionally slower winter season.  In This Episode We Cover:Why mortgage originations are falling faster than ever before (and what this means for home prices)Andy’s Q4 housing market forecast and how to tell where prices are headedForeclosures, delinquencies, and why “distressed sellers” aren’t flooding the marketWhy investors have “backed off” the housing market waiting for mortgage rates to dipRegional housing markets that could see the best (and worst) home price performance The rising popularity of assumable mortgages and the massive downside to doing one of these dealsAnd So Much More!Links from the ShowFind an AgentFind a LenderBiggerPockets ForumsBiggerPockets AgentBiggerPockets BootcampsJoin 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 ChannelDave's BiggerPockets ProfileDave's InstagramHear Our Last Episode with AndyRead the October 2023 Mortgage Monitor ReportArchive of Past Mortgage Monitor ReportsConnect with Andy:Work with Andy and His TeamClick here to listen to the full episode: https://www.biggerpockets.com/blog/on-the-market-152Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

The Fed’s new “neutral interest rate” could mean pricier mortgages, less cash flow, and higher home prices for longer. After the great financial crisis, interest rates were kept in check, slowly sliding down for over a decade. But, since the pandemic, things have gone the opposite way. Mortgage rates have hit multi-decade highs, bond yields have crossed new territory, and we could be far from things returning to “normal.”If you want to know the math behind the mortgage rates and understand what the Fed does (and doesn’t) control in a high-rate world, Redfin’s Chen Zhao can break it down for you. In this episode, Chen goes through the economic indicators tied to mortgage rates, how bond yields affect banks' lending power, why the ten-year treasury is at a historic high, and the Fed’s newest “neutral interest rate.”We’ll also get into the potential effect of next year’s presidential election on mortgage rates and the housing market and what to look for to gauge where we’re headed. If you want to know where interest rates will go, Chen details the roadmap in this episode.In This Episode We Cover:The math behind mortgage rates and what causes them to rise and fallThe Fed’s new “neutral interest rate” and why mortgage rates could stay where they are for a LONG timeBond spreads, how they affect mortgage rates, and why they’ve taken a massive leapReaching economic equilibrium and how the Fed plans to keep unemployment and inflation downThe 2024 presidential election and whether Democrats or Republicans could help/hurt the housing marketAnd So Much More!Links from the ShowFind an AgentFind a LenderBiggerPockets ForumsBiggerPockets AgentBiggerPockets BootcampsJoin 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 ChannelDave's BiggerPockets ProfileDave's InstagramHenry's BiggerPockets ProfileHenry's InstagramThe Federal Reserve is Suddenly Doubling Its Forecast For Growth—But Will They Keep Hiking Rates?Mortgage Rates Reach the Highest Point in 20 Years—How Much Higher Will They Go?Connect with Chen:Economists CornerChen's LinkedInResearchClick here to listen to the full episode: https://www.biggerpockets.com/blog/on-the-market-151Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Everyone wants low mortgage rates again, but getting there might be one of the most economically treacherous roads many have ever faced. The sacrifice needed to get interest rates down would be substantial and lead to severe effects throughout the economy and all of our lives. After you hear today’s interview with Senior Economist at Zillow, Orphe Divounguy, you’ll know exactly what we mean.Orphe’s team tracks anything and everything to do with the housing market. From home prices to migration, mortgage rates, new construction, and more, their finger is closer to the housing market pulse than most. But, if you want an episode where we talk about home prices coming back down and rates finally falling, this isn’t it. Orphe brings on the housing market facts and forecasts a future many of us didn't think possible just a few months ago.We’ll go over home price predictions, what could cause rates to finally fall, underrated affordable markets, recession risk, and how to get started investing in real estate during such a tough market.In This Episode We Cover:The one thing that could cause mortgage rates to fall (and the danger behind it)Zillow’s recession forecast and why US economic growth might be impossible to stopHigher home prices and how the supply lag has kept prices near all-time-highs Rent growth and which types of real estate are already seeing a return to normalThe most affordable, underrated real estate investing market that won’t last longWhere Orphe is investing in real estate and his advice for getting startedAnd So Much More!Links from the ShowFind an AgentFind a LenderBiggerPockets ForumsBiggerPockets AgentBiggerPockets BootcampsJoin 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 ChannelDave's BiggerPockets ProfileDave's InstagramKathy's BiggerPockets ProfileKathy's InstagramFannie Mae Expects a Recession as Mortgage Rates Continue to ClimbRate-Locked Homeowners Nearly Twice as Likely to Not Consider SellingConnect with Orphe:Orphe's LinkedInOrphe's ResearchClick here to listen to the full episode: https://www.biggerpockets.com/blog/on-the-market-150Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

The real estate commission lawsuit that threatened buyer’s agents’ income is coming to an end. The conclusion? There could be even more murkiness ahead, and agent commissions are far from future-proofed. This settlement could either have been a cash grab from the get-go or a way to end the “unfair” buyer-seller agent commission split. So, how will this affect buyers and sellers today, and will these lawsuits make a difference on your next home sale or purchase?We’ve got the hard-hitting housing market headlines you need to hear about on this episode of On the Market. First, we’ll talk about RE/MAX’s settlement and the future for buyer’s agents. Then, we’ll uncover why exactly housing starts have started (no pun intended) to freeze and why apartment investors could be begging you to take land off their hands. And, if you’ve ever wanted your home to pay you money every month, the new “passive home” development has just what you’re looking for. But with a high initial purchase price, are the savings/profits worth the cost?Finally, if you thought you were smart for house hacking, prepare for an ego-blow because Dave Ramsey wants YOU to know that subsidizing your mortgage is a move for LOSERS. Sell that investment property, buy your house in cash, and prepare some beans and rice for dinner! All that and more on this episode!In This Episode We Cover:The RE/MAX agent lawsuit settlement and what this means for real estate agent commissions Too many agents, not enough housing, and why “change” is coming to the industry Home construction numbers and why housing starts dropped to their lowest level in yearsThe “passive home” with such massive energy savings that utility companies will pay you to liveDave Ramsey’s house hacking rant and why his investing advice doesn’t quite hit the markAnd So Much More!Links from the ShowFind an AgentFind a LenderBiggerPockets ForumsBiggerPockets AgentBiggerPockets BootcampsJoin 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 ChannelDave's BiggerPockets ProfileDave's InstagramHenry's BiggerPockets ProfileHenry's InstagramJames' BiggerPockets ProfileJames' InstagramKathy's BiggerPockets ProfileKathy's InstagramNew Agent Lawsuits Could Have Profound Effects for Buying and Selling HomesRE/MAX SettlementHousing StartsPassive HomesDave RamseyClick here to listen to the full episode: https://www.biggerpockets.com/blog/on-the-market-149Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

The Chinese real estate crisis could mean much more for the global economy than you think. One economic giant falls, and other interconnected countries, like the United States, feel the shockwaves. As more and more bad news (or LACK of news) comes out of China, we have one question: how will our housing market, stock market, and government be affected? The Motley Fool’s Bill Mann is on to help answer.Bill works as a “treasure hunter,” searching for underpriced but financially sound stock investments for all of The Motley Fool’s subscribers. As a result, Bill’s research goes far beyond the borders of the United States. He’s constantly looking at global markets and industries to see which could be on track for a meteoric rise.In today’s episode, Bill walks us through China’s economic crisis, their “rotting” real estate, and what happens if they continue into a deflationary spiral. Then, we talk about Taiwan’s chip manufacturing monopoly and what would happen if a global conflict threatened this industry’s safety? Finally, Bill gives us a global economic forecast with his two cents on interest rates, the “economy of the future,” and the USD “wrecking ball.”In This Episode We CoverThe spiraling Chinese economy and why their real estate is beginning to “rot” Chip manufacturing and the most important technological industry you’ve never thought aboutTaiwan’s semiconductor monopoly and why the US is going to great lengths to protect itThe USD “wrecking ball” and how a strong dollar could hurt global economies One country that could become the “economy of the future” An interest rate prediction and whether or not Bill thinks the Fed has any more room to hike rates And So Much More!Links from the ShowFind an AgentFind a LenderBiggerPockets ForumsBiggerPockets AgentBiggerPockets BootcampsJoin 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 ChannelDave’s BiggerPockets ProfileDave’s InstagramMotley Fool MoneyBooks Mentioned in the ShowRaising Private Capital by Matt FairclothThe Hands-Off Investor by Brian BurkeConnect with BillGlobal PartnersMotley Fool MoneyValue HuntersClick here to listen to the full episode: https://www.biggerpockets.com/blog/on-the-market-148Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

The multifamily real estate market went from bad to worse. Interest rates are still at record highs, cap rates have somehow stayed compressed, rent growth looks bleak at best, and sellers refuse to budge on their prices. As a result, inexperienced operators are picking up so-called “deals” to shop around to their investors—and they could be walking into a massive financial trap without even knowing it.If you want one hundred and one reasons NOT to buy multifamily right now, Brian Burke is here to help. But, if you want a counteracting force of optimism as to why you should pursue multifamily properties, Matt Faircloth can balance out this debate. These investors have owned and managed THOUSANDS of apartment units, but NEITHER of them has bought in over a year. Brian even went as far as selling most of his portfolio right before the commercial crash, a move many thought was far from wise at the time.These two time-tested multifamily experts come on today to talk about the commercial real estate crash, the “chaos” that could ensue over the next year, why inexperienced syndicators are about to bite the dust, and why multifamily investing may not be the move to make in 2023. Think this is just a bunch of scare tactics to keep you away from good deals? Tune in to be surprised.In This Episode We Cover:The multifamily market crash and why sellers are STILL asking for all-time-high pricesRisky real estate debt and what you MUST know about commercial financing before you buy another propertyWhat Brian and Matt MUST see in a property before they send in an offerThe “wave of foreclosures” that won’t come and deals being done in the shadows What to do RIGHT now as the market is in shambles to make the most money in the futureCap rate compression and why these high multifamily prices can’t lastAnd So Much More!Links from the ShowFind an AgentFind a LenderBiggerPockets ForumsBiggerPockets AgentBiggerPockets BootcampsJoin 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 ChannelDave's BiggerPockets ProfileDave's InstagramJames' BiggerPockets ProfileJames' InstagramMeet Brian and Matt at BPCon!Sign Up for the BiggerPockets Multifamily BootcampThe Multifamily “Bomb” is About to Blow, Here’s What You Need to KnowBooks Mentioned in the ShowRaising Private Capital by Matt FairclothThe Hands-Off Investor by Brian BurkeConnect with BrianBrian's BiggerPockets ProfileBrian's WebsiteBrian's InstagramConnect with MattMatt's BiggerPockets ProfileMatt's WebsiteMatt's InstagramClick here to listen to the full episode: https://www.biggerpockets.com/blog/on-the-market-147Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Discussion on potential triggers for a 2024 recession: auto worker strike, government shutdown, student loan resumption, and rising oil prices. Redfin leaving National Association of Realtors signals industry changes. Speculation on lawsuits and economic drags. Concerns about impact of student loan debt payments on economy. Potential consequences of auto worker strike on unemployment and other industries. Advancements in technology leading to job displacement. Government shutdown's impact on workers and essential businesses. Challenges of real estate investing in current climate.

The housing market is now aggressively out of reach for first-time home buyers. Nearly sixty percent of homes for sale are unaffordable to the average American. What’s causing such a lack of affordability? High mortgage rates, meager supply, and baby boomers refusing to sell their single-family homes (seriously). These factors have created a housing market where “forced renter households” will become the norm…but not for long.According to Matthew Gardner, Chief Economist at Windermere Real Estate, there’s at least some hope on the horizon. Mathew knows the solution to this almost unfathomable unaffordability issue, and it’s much simpler than most people think. In this episode, he talks about the primary driver of high home prices, the factors causing so many Americans to rent, and why we can’t repair this market using the same housing market “incentives” that worked in the past.And, as someone who works regularly with large-scale investors, Mathew has some advice for those still trying to invest in a market where profits seem improbable. When will mortgage rates head down? How long will unaffordability last? And what’s the solution Matthew thinks will solve it all? We’ll get into all that in this episode!In This Episode We Cover:The SINGLE factor that’s causing so much unaffordability in the housing marketHome price updates and a surprising statistic about homes for sale Mortgage rate predictions and whether or not we’ll see them fall next year“Forced renter household” formation and whether America will become a renter nationCrucial advice for ANYONE who’s buying real estate in 2023 (and if you should wait)And So Much More!Links from the ShowFind an AgentFind a LenderBiggerPockets ForumsBiggerPockets AgentBiggerPockets BootcampsJoin 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 ChannelDave's BiggerPockets ProfileDave's InstagramJames' BiggerPockets ProfileJames' InstagramHousing is Unaffordable, But Could It Actually Get Worse?Connect with MatthewMatthew's FacebookMatthew's InstagramMatthew's LinkedInMatthew's Twitter/XClick here to listen to the full episode: https://www.biggerpockets.com/blog/on-the-market-145Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices