125: Is Buying a Bad Decision in 2023? w/Redfin’s Daryl Fairweather

Buying a home might not be the best idea in 2023. You’ll have to go through a few challenges to get one under contract. First, find a homeowner who wants to sell their home; you’ll need to convince them that ditching their low rate is worth the price. Then, secure funding; but with even the best home buyer loan, you’ll probably be stuck with a seven percent rate. Wouldn’t it be easier just to rent and invest the rest of your money? According to Daryl Fairweather, Ph.D., Chief Economist at Redfin, that’s precisely what you should do. New data has shown that with home affordability at historic lows, now isn’t the best time to buy a primary residence. But where would you find the inventory even if you wanted to buy? “Locked-in” homeowners are refusing to part ways with their properties, and nobody can blame them. But, there are still a few metro areas worth buying in, and if you live in, or are moving to, one of these areas, you could be in luck. But Daryl doesn’t just explain the buying vs. renting debate. She also talks about buyer demand and its recent drop-off, mortgage rate predictions and what we can expect rates to get down to, risky real estate markets facing natural disasters, and news for real estate agents that could change how commissions are paid and collected. In This Episode We Cover Renting vs. buying and which is a better bet in 2023 Affordability, buyer demand, and why renting may be the only option for many Mortgage rate predictions and how low rates could go in the near future Insurance headaches from California and Florida and why insurers AREN’T signing new policies Migration patterns and where Americans are moving as home prices remain high New real estate agent commission news that could change who pays an agent for buying or selling a property And So Much More! Links from the Show Find an Agent Find a Lender BiggerPockets Forums BiggerPockets Agent BiggerPockets Bootcamps 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 Get Access to Unlimited BiggerPockets Audiobooks and Ad-Free Podcast Episodes Renting vs. Buying a House: Which Makes More Sense Connect with Daryl Daryl Instagram Daryl LinkedIn Daryl Twitter Redfin News Click here to listen to the full episode: https://www.biggerpockets.com/blog/on-the-market-125 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices