Today’s housing market has a lot of people scared, and investors are worried as well. Home prices are starting to slump, inflation is hitting decade-long peaks, and interest rates have turned everyone’s cash flow cushions into break-even deals at best. Is there any respite in the wild real estate market? And why do top investors seem so excited about it?

We’re back on another correspondents episode of On the Market, where Professor Dave has asked students Henry, James, and Kathy to bring in their favorite real estate market news for show-and-tell. These stories hit different aspects of the housing market, showcasing the cracks forming in the overall economy and what investors need to be prepared for to react. We talk about how home flips are being discounted across expensive coastal cities, why rent price growth is starting to stall, and how buyers got their negotiation power back.

We’ll also be touching on the recent inflation data, showing that we have a long way to go until we return to the good ol’ days of two-percent price growth. Then, we take a request from the On the Market Forums where we answer an age-old question: When should you sell a BRRRR property? All this, and more, coming up on this week’s data-first housing market deep dive!

In This Episode We Cover

Another nasty inflation report and what this could mean for the housing market

Why flips are becoming riskier in today’s volatile market and how to prep for a profitable flip

Rent growth data and which markets as seeing the strongest (and weakest) rent growth numbers in the nation

Why buyers are asking for more repairs, bigger seller concessions, and lower prices

When to sell a BRRRR property and using cash-on-cash return vs. ROE (return on equity)

Fool-proof deal analysis and why investors need to be careful buying in 2022 and 2023

And So Much More!

Links from the Show

Find an Investor-Friendly Real Estate Agent

BiggerPockets Forums

BiggerPockets Agent

Join BiggerPockets for FREE

On The Market

Join the Future of Real Estate Investing with Fundrise

Connect with Other Investors in the “On The Market” Forums

Subscribe to The “On The Market” YouTube Channel

Dave’s BiggerPockets Profile

Dave’s Instagram

Henry's BiggerPockets Profile

Henry's Instagram

James' BiggerPockets Profile

James' Instagram

Jamil's BiggerPockets Profile

Jamil's Instagram

Kathy's BiggerPockets Profile

Kathy's Instagram

NPR Price Drops

Redfin Rent Growth

USA Today Punch List

Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-48

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48: Why Volatile Housing Markets Are Looking Attractive to Investors 51:06 Share

On The Market

Shownotes Transcript

48: Why Volatile Housing Markets Are Looking Attractive to Investors