Podcast Summary
Discussing 2023's Economic and Housing Market Trends and Predictions: The On The Market podcast provides valuable insights into current real estate market conditions, focusing on strategies that work best and markets seeing the best conditions, with panelists sharing their expertise and predictions for the second half of 2023.
The On The Market podcast, taking over the BiggerPockets feed, aims to provide listeners with valuable data, information, and news about current market conditions in real estate, focusing on strategies that work best and markets seeing the best conditions. The panelists, including Cathy Fedki, James Dayner, and Henry Washington, will discuss the first half of 2023's economic and housing market trends and make predictions for the second half. They will also discuss various markets across the US and how investors can adapt their strategies to the current market conditions. The panelists have extensive experience in real estate investing, with Cathy co-founding Real Wealth and having a 20-year history, James being a full-time investor since 2005, and Henry having been investing since 2017.
Streamlining Real Estate Investing with Technology: DealMachine simplifies lead management, Rent to Retirement offers no money down investing, SimpliSafe ensures peace of mind with home security, and housing market conditions remain diverse.
Technology is making lead management and real estate investing easier and more accessible. DealMachine offers unlimited contact information and phone numbers for lead generation, while Rent to Retirement allows investing with no money down. SimpliSafe ensures peace of mind with home security. Housing prices have corrected slightly, but the extent of the correction varies from market to market. In Northwest Arkansas, for instance, prices have continued to rise due to the presence of recession-proof corporations attracting employees to relocate. Overall, technology is streamlining various aspects of real estate investing, and market conditions remain diverse. To sum up, DealMachine simplifies lead management with new filters, people flags, and color-coded phone numbers. Rent to Retirement offers turnkey rental properties with no money down. SimpliSafe provides peace of mind with home security. Housing prices have corrected, but the extent of the correction varies. In Northwest Arkansas, prices continue to rise due to corporate relocations. If you're looking to step up your investing game, consider signing up for a DealMachine plan or exploring Rent to Retirement's no money down opportunities. SimpliSafe offers peace of mind for homeowners, and their systems can be installed quickly and easily. Keep in mind that housing market conditions vary, so it's essential to stay informed about your specific market.
Historically low inventory and high competition keep housing prices stable: Despite rising interest rates, low inventory and intense competition prevent housing market crash and keep prices from dropping significantly. Potential buyers face shorter market times due to increased competition.
The current state of the housing market is characterized by historically low inventory and high competition, despite rising interest rates. This situation is preventing a housing market crash and keeping prices from significantly dropping. The reasons for the low inventory include a decrease in home sellers due to the desire to hold onto their current homes with lower mortgage rates and the fear of not finding a suitable replacement at current interest rates. Consequently, potential buyers are facing increased competition, leading to shorter days on the market for homes. This trend is evident in various markets, including Seattle, where the competition has significantly decreased since last year despite the market correction. Overall, the housing market remains locked due to these factors, and a significant shift is expected only if interest rates decrease.
Seattle Housing Market: Recovery with Uncertainty: The Seattle housing market is recovering from a low inventory situation, causing high competition and rising prices, but mortgage rates remain high and uncertain, potentially impacting buyer demand and housing prices.
The Seattle housing market is experiencing a significant turnaround, with low inventory leading to high competition and rising prices. Prices are currently coming down slightly year over year but have not crashed. Mortgage rates have risen to around 7% and are expected to stay high, with predictions ranging from 5.9% to 7.5% by the end of 2023. The consensus among our panelists is that rates will remain higher for longer due to the Federal Reserve's efforts to control inflation. Year over year housing prices are currently flat to slightly down, but some experts predict a slight increase if mortgage rates decrease and more buyers enter the market. Overall, the housing market is showing signs of recovery but remains uncertain and volatile.
Predictions for the Economy in 2023: Experts have mixed views on economic growth in 2023, with some predicting minimal growth or no recession and others expecting a potential recession, while the housing market remains a point of contention.
Our panel of experts has mixed predictions for the economy in 2023. While some, like Kathy and Henry, believe in minimal growth or even no recession, others, like James and the economist Mark Zandy, think it's too early to rule out a recession despite recent positive economic indicators such as job growth. The housing market also remains a point of contention, with some predicting a slight decline and others expecting continued growth. Ultimately, the panel agrees that these predictions are educated guesses based on current data, and the economy's future remains uncertain.
Labor and Housing Market Trends: The labor market is recovering, but housing market trends vary widely, with some cities seeing price declines and others experiencing increases. Platforms like Steadily and Connect Invest offer solutions for investors, while BetterHelp provides mental health support.
The labor market is currently experiencing a turnaround, with the unemployment rate likely to remain low for several months, even if there's a job loss recession on the horizon. Meanwhile, in the housing market, there's a significant divide between markets experiencing price declines and those seeing price increases. Boise, Idaho, was the second-worst performing market over the last year with a 14% decline in sale prices, while Austin, Texas, had the worst performance with a 15% decline. Contrastingly, cities like San Francisco, Sacramento, Phoenix, and Vegas saw price increases. For investors, platforms like steadily.com offer fast and affordable landlord insurance, while Connect Invest provides passive income through real estate investment without the hassle of ownership or management. Additionally, therapy through BetterHelp can help individuals discover their true priorities and make time for what matters most.
Understanding Market Differences: Fayetteville vs. Seattle and Denver: Stay informed about local market trends and consider under-the-radar markets for investment. Emerging markets like Thackerville, Oklahoma, offer potential benefits through lower property taxes, home prices, and building costs.
The real estate market is experiencing significant variations between different locations, with some areas showing impressive growth while others continue to struggle. For instance, Fayetteville, North Carolina, has seen a 16% increase, while Seattle and Denver are still negative. This vast difference highlights the importance of staying informed about local market trends and considering under-the-radar markets for investment. Kathy, one of the panelists, introduced Thackerville, Oklahoma, as an emerging market. This small town, located just over the border from Texas, has seen growth due to businesses and people moving to more affordable areas. Although there's a lack of inventory, the lower property taxes, home prices, and building costs make it an attractive option. Additionally, the presence of businesses like Windstar Casino and distribution centers for companies like Walmart, Liberty Energy, and Lowe's adds to the area's growth potential. By looking beyond the well-known markets and focusing on areas with promising underlying factors, investors can potentially benefit from the path of progress.
Northwest Arkansas: A Hidden Real Estate Gem: Large corporations drive population growth, creating demand for housing and rental properties. Low inventory and affordable prices offer opportunities for both cash flow and appreciation in a healthy real estate market.
Northwest Arkansas is an under-the-radar real estate market with strong economic fundamentals and great potential for investors. The presence of large, recession-proof corporations like Tyson Foods, JB Hunt Transportation, and Walmart has led to significant population growth, resulting in high demand for housing and rental properties. This demand, coupled with low inventory and affordable prices, creates opportunities for both cash flow and appreciation. Additionally, the area boasts a healthy real estate market with quick turnaround times and low vacancy rates. Overall, Northwest Arkansas offers an attractive investment landscape for those seeking solid returns in real estate.
People moving to more affordable areas like Green Bay, WI: The pandemic and affordability are driving people to move to cities like Green Bay, where median home prices are $240,000 and homes sell above list price. Factors like the local economy and quality of life also contribute to the appeal.
The trend towards affordability and quality of life is driving people to move out of metro cities and into more affordable areas, such as Green Bay, Wisconsin. This shift is due in part to the pandemic changing people's mindsets and priorities, as well as the continued growth and affordability of these markets. For example, Green Bay's median home price is currently $240,000, and homes sell for an average of 5-11% over list price. Additionally, the economic engine of the area, such as the cheese industry, adds to its appeal. However, it's important to note that affordability alone is not enough to attract people to a city. Factors such as quality of life, weather, and taxes also play a role. Overall, the trend towards affordability is expected to continue driving housing market trends in the coming years.
Finding under-the-radar real estate markets and navigating investments with expert agents: Researching potential investment markets and connecting with investor-friendly agents can lead to financial freedom through real estate investment. Stay informed and stay invested.
While specific markets may change, the goal of financial freedom through real estate investment remains constant. The speakers on this podcast discussed under-the-radar markets and the importance of research in finding potential investment opportunities. You don't have to invest in these exact markets, but the logic and reasoning behind the research is applicable to anyone looking to invest in real estate. If you're ready to take the next step, finding an investor-friendly agent can help navigate the market and increase confidence in your investment decisions. Use BiggerPockets Agent Finder to connect with local market experts and get closer to financial freedom. Remember, it's not about timing the market, but rather time in the market. Stay informed and stay invested. Connect with Henry Washington on Instagram or his website, James Danyard on Instagram or his website, or Kathy Fedge on realwealth.com or Instagram. And don't forget to check out the On the Market podcast for weekly data-focused real estate investment information.
