On The Market BiggerPockets

Will we finally get the rate cuts the Fed hinted at earlier this year? Has the job and housing market taken a big enough hit for us to still be concerned about inflation? And how are more Americans going mortgage-free during such economic uncertainty? The housing market is changing fast, but we’re here to break down all the latest data from recent headlines as we touch on inflation, rate cuts, housing market competition, foreclosure activity, and more!
We know what you want to hear about—rate cuts. We’ll touch on the latest Fed update in our first headline, as the chance of a 2024 rate cut increases with last week’s promising inflation data release. This is good news for homebuyers but may make getting a job (or keeping one) challenging. What do we mean? We’ll explain it all at the start of the show. Next, housing competition begins to drop as inventory increases and homes sit on the market longer. Will this lead to a decrease in home prices over the next year? One top listing site believes so.
With all this worry about mortgage rates, many Americans are going in the opposite direction as mortgage-free homeownership steadily increases. This could have long-lasting effects on housing inventory, but when will it hit? Finally, we touch on the increase in foreclosure activity and whether or not it’s a sign of a shaky housing market to come!

In This Episode We Cover
The Fed’s new rate cut prediction and how big the cut could be in 2024
Inflation rate updates and why financial markets celebrated last week
How a spike in new listings could lead to lower competition and on-market houses sitting longer
The steady increase in mortgage-free homeownership and what happens when these houses get inherited
Why foreclosure activity is starting to rise, but it may not mean what you think
And So Much More!
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Headlines from Today’s Show:
Rate Cuts
Housing Competition
Mortgage-Free Homeowners
Foreclosures
 
Book Mentioned in the Show:
Real Estate Deal Maker by Henry Washington

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Multifamily sales are at the lowest point in the past four years. We haven’t seen transaction levels this low since the start of the pandemic and after the last housing crash. But, for buyers, this could point to some tremendous opportunities. With fewer sales could come higher cap rates, lower prices, and more profit per dollar spent on your next multifamily deal. The question is, how low will prices go, and when WILL be the right time to buy?
Xander Snyder, Senior Commercial Real Estate Economist at First American, joins the show to give us the latest update on multifamily sales, prices, cap rates, and even a prediction for 2025. Xander strongly argues that multifamily price declines could be far from over. With buyers patiently waiting for sellers to drop their prices and the cost of capital still so high, motivated sellers must act quickly to get a buyer, which could mean more price cuts.
We’ll also discuss why cap rates are expanding and how they’ve already jumped fifty percent in some markets. Plus, what could happen to rents as the “oversupply” of multifamily investments hits the market? An even better question is what happens when all that supply gets used up? We’re answering it all in this episode.

In This Episode We Cover
2024 multifamily transaction volume updates and why sales are so low
Cap rate expansion and why this is great news for buyers (but NOT for sellers)
Why multifamily price drops aren’t even close to finished
Rent price growth predictions and why multifamily investors shouldn’t be too sure that they can increase rents
How our multifamily “oversupply” could quickly become an undersupply 
What to expect from the multifamily market in 2024 and into 2025 (significant changes!)
And So Much More!
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Multifamily Is Likely To Start Recovering in 2024—Here’s Why
Follow Xander on X
Why Apartment Rents are Poised to Decline in Former Pandemic Hot Spots (Graph)


Jump to topic:
(00:00) Intro
(01:03) Multifamily Transactions at Rock-Bottom
(04:34) Why Volume is So Low
(06:29) Buyers Are Waiting for This
(08:38) Cap Rates Expand 
(13:53) Investors Will Have to Wait
(14:57) Will Prices Keep Declining? 
(17:38) Multifamily Rent Forecast
(19:36) The "Oversupply" Could Flip
(23:26) 2025 Predictions 

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Zero-down mortgages are back. That’s right. You can now get into a home with (potentially) zero dollars out-of-pocket. But wait…this is starting to sound a bit like 2008. Remember the fully-funded mortgages that didn’t require income verification? Are we back to the days of NINJA loans as homebuyers struggle with affordability, forcing them to take on zero-down loans? Not quite. We’ll explain why on this headlines show!
This time, we’re talking about the new zero-down mortgage loan. But that’s not all. One crucial housing metric has exploded, and if you sell, BRRRR, or flip houses, this is one metric you MUST pay attention to. Remember back in 2021 when lumber prices were so high that you needed to take out a personal loan to buy a toothpick? The mahogany tables have turned as we bring some good news for new construction investors and home renovators.
Lastly, we look overseas at the international housing markets that are seeing the biggest price drops and increases. We also share where we would invest abroad and whether or not we think these markets beat the good ol’ USA. Stick around for your latest housing market update on this headlines show! 

In This Episode We Cover
New zero-down mortgage loans and whether they’ll lead to risky home purchases
What you must know (and do) if you’re going to buy a home with low money down
The one home price metric you should pay attention to when flipping, rehabbing, or buying new construction
Good news for new builds and why lumber has finally returned to pre-pandemic price levels
The international housing markets seeing the biggest price drops, and whether we’d buy there or not
And So Much More!
Links from the Show
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Kathy's Instagram
Property Manager Finder
See Dave at BPCON2024 in Cancun!
No Money Down Loans: How Do They REALLY Work?
Zero-down mortgages are making a comeback
A key home price metric has skyrocketed since 2019
Federal Reserve rate stagnation impacts wood products markets
3 International Locations Where Housing Prices Are Plummeting Post-Pandemic

Jump to topic:
(00:00) Intro
(01:22) 0% Down Mortgages Return 
(14:13) Crucial Housing Metric JUMPS
(20:41) Lumber Prices Stabilize 
(26:51) International Home Prices Drop 

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Wholesaling real estate may be banned nationwide within a few short years. After a new law was passed in South Carolina prohibiting the practice, other states started to follow their lead, making their own laws that limit or completely restrict wholesaling real estate. Why is this happening now, and if a nationwide wholesaling ban does get passed, are there loopholes for wholesalers to still make money assigning properties? South Carolina real estate attorney Gary Pickren is on the show to explain.
Gary is no stranger to wholesaling. He’s quick to tell you how crucial wholesaling has been to his business’s growth. But Gary isn’t trying to dance around the new laws and pretend that everything will be alright for real estate wholesalers. In fact, Gary believes that this new South Carolina law could change real estate wholesaling forever, and it may even be for the best.
We’ll describe the new South Carolina law and the legal verbiage that spells out the wholesaling ban. Gary even gives a completely legal way of getting around the new wholesaling law, but the rules MUST be followed. If you’re a wholesaler anywhere in the United States, this law directly affects you and your livelihood. Not staying up-to-date on this could, at best, cost you money or, at worst, land you behind bars.

In This Episode We Cover
Wholesaling explained and why the practice is currently in jeopardy
The newest South Carolina wholesaling law and its monumental effects on the industry
Wholesaling “assignments” defined and the risk of marketing a property in the wrong way
Whether or not this new law could lead to a nationwide ban on wholesaling 
Gary’s savvy way to get around this wholesaling ban through this one type of “contract”
Whether or not this new law applies to commercial real estate wholesaling as well
And So Much More!
Links from the Show
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A New South Carolina Law Would Severely Crack Down on Wholesaling
Wholesale Real Estate – What Is It & How to Get Started For Beginners
Is Wholesaling Legal? It’s Complicated


Jump to topic:
(00:00) Intro
(01:38) What is Wholesaling? 
(05:33) Working Against Realtors?
(07:59) How Everything Changed 
(13:52) The Real Problem with Wholesaling
(16:27) The End of Wholesaling 
(20:33) Tricky Legal Language 
(28:01) A Nationwide Wholesaling Ban?
(34:47) What About Commercial Real Estate?

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House flipping vs. renting vs. build-to-rent: which real estate investing strategies could make you the MOST money in the second half of 2024? At the beginning of the year, many investors believed that interest rates would be coming down, housing inventory would finally return to the market, and inflation had been defeated. But that didn’t turn out to be the case. In this ever-changing housing market, what should investors like you do to make the most money possible with the fewest risks? We asked three of our expert panelists to give their take!
So today, we’re having a friendly real estate investing strategy smackdown to pit house flipping against buy-and-hold against build-to-rent homes. Each strategy has BIG benefits but also comes with some serious risks rookie and expert investors should be looking out for. Plus, these investing strategies are NOT for everyone. We’ll discuss who should (and definitely shouldn’t) invest using each method.
2024 is not an easy real estate market, but our expert investors lay out the exact risks to avoid, how to get around them, and the best ways to build serious wealth while most Americans sit on the sidelines. We’ll talk about the enormous gains you can make even with high interest rates, what James calls the best way to find financial freedom, how to invest EVEN if you have very little time, and the one type of rental property with WAY lower insurance and repair costs. 

In This Episode We Cover
The three best real estate investing strategies of 2024 and which methods we’re using TODAY
Buy-and-hold real estate and the CRUCIAL skill that will help you build a real estate portfolio faster 
The costs that can kill your house flipping business, but the massive gains you can make EVEN in 2024
Build-to-rent investments and why this may be one of the easiest ways to invest in real estate
Don’t have experience or money? How to form partnerships that’ll grow your wealth even if you’re a beginner 
And So Much More!
Links from the Show
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Property Manager Finder
How to Build Wealth With Rental Properties Through Buy & Hold Investing
Flipping Houses: How to Get Started and Everything You Should Know
Investors Are Putting Their Money in Build-to-Rent Homes at a Record Rate—What’s Causing the Frenzy?

Jump to topic:
(00:00) Intro
(01:18) Buy (Renovate) and Hold
(08:32) Who Should Buy and Hold?
(10:05) Biggest Risks 
(12:04) Flipping Houses 
(17:41) Who Should Flip?
(20:01) Biggest Risks 
(22:57) New Construction 
(31:34) Biggest Risks 
(34:36) Best 2024 Investing Strategy 

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Millennials can’t afford homes, but somehow, their younger siblings, Gen Z, can. Even with over a decade more work experience than Gen Z, Millennials still feel priced out of the housing market. So how can the younger generation, only twenty-seven years at the oldest, already be on track to beat Millennials in the homebuying race, all while mortgage rates and prices are high, inventory is low, and inflation is eating away at Americans’ disposable income? We’ve got Redfin’s Chen Zhao back on the show to explain.
Today, we’re trying to answer one question: Who is buying all the houses? With younger generations struggling to buy and more Baby Boomers aging in place, real estate investors want to know their competition and who they may be selling their homes to. In this episode, Chen breaks down the data behind age trends in homebuying, plus shares why Millennials fell behind past generations.
But that’s not all. We’re getting into the changing landscape of the “buy vs. rent” debate and whether more renters now will mean fewer homebuyers in the future. Plus, with an aging Baby Boomer generation, will we finally see the “Silver Tsunami” of housing inventory hit the market as boomers “age in place,” especially with their large share of family-sized houses? Could our housing supply problems reverse if a sizable amount of inventory hits the market? We’re answering it all coming up!

In This Episode We Cover
Why Millennials can’t afford houses, and the reason so many still don’t own homes
How Gen Z is already on track to get ahead of Millennials even with today’s economic turbulence
Buying vs. renting a home and the “mismatch” between what renters want and what landlords supply
A potential reversal of our massive housing shortage and when this could happen
Whether or not the “Silver Tsunami” will hit the housing market as boomers get older
How the increase of “aging in place” will affect home inventory as Gen Z/Millennials try to buy
And So Much More!
Links from the Show
Find an Agent
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On The Market
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Property Manager Finder
On the Market 151 - The Math Behind Mortgage Rates and Why They’re Staying Put
Real Estate Podcast 867 - Zillow and Redfin Top Economists Give Their 2024 Housing Market Predictions
Why Are Millennials So Behind in Homeownership?
 
Connect with Chen:
Chen’s LinkedIn
Redfin News
Redfin’s “From Our Economists”
Redfin Report: Gen Zers and Young Millennials Took Out 40% of U.S. Mortgages in 2023


Jump to topic:
(00:00) Intro
(01:03) Are Millennials Priced Out?
(04:29) Millennials’ Lost Decade
(07:46) Gen Z is Getting Ahead
(11:08) Is Homebuying Overrated? 
(16:56) The Housing Shortage Could Reverse 
(19:58) Boomers Ageing in Place 
(25:20) Young People are STILL Buying! 

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