In this episode of the Texas Real Estate and Finance Podcast, host Mike Mills discusses the current state of the economy, the potential for a recession, and the recent class action lawsuit against the National Association of Realtors (NAR). He also examines the impact of interest rates on the housing market and the potential changes in the real estate industry. Mills emphasizes the importance of real estate agents and the challenges they face, advising them to effectively communicate their value to clients. He concludes by encouraging agents to find opportunities within the problems they face.
The US Economy and Recession (00:01:54) Discussion on the current state of the US economy, including the recent GDP growth and potential indicators that things may not be as positive as they seem.
Class Action Lawsuit Against NAR (00:01:09) Explanation of the recent class action lawsuit judgment against NAR and its potential impact on the real estate industry.
News Stories Impacting the Economy (00:03:39) Coverage of various news stories, such as wage increases in the auto industry, international financial decisions, and the launch of JPM Coin, that may have implications for the overall economy.
The Tax Dollar Impact (00:08:23) Discussion on how both the red and blue teams are using taxpayers' money to cover expenses and fight inflation.
Interest-Bearing Accounts (00:09:14) Importance of keeping savings in interest-bearing accounts to earn higher returns, with a focus on smaller local community banks.
Indicators of a Recession (00:10:16) Various signs pointing towards a possible recession, including high levels of interest spending, low commercial real estate lending, and the Fed's decision to pause interest rate hikes.
The impact of interest rates on home prices (00:16:51) Discussion on how interest rates affect home prices and the potential for skyrocketing prices if rates remain high.
The likelihood of interest rates staying low (00:17:41) Exploration of the artificiality of low-interest rates in the past and the prediction that 5% is the best rate we'll see for a while.
The benefits of owning real estate in a changing market (00:18:29) Explanation of how owning real estate can be advantageous during times of decreasing rates, increasing demand, and a potential recession.
The impact on real estate agents (00:25:19) Discussion on how real estate agents may react to the changes and the opportunities that can arise from the new norm in the industry.
Understanding NAR and its benefits (00:26:15) Explanation of what NAR is, its significance in the real estate industry, and the benefits of being a member.
Potential changes in commissions and mortgages (00:28:05) Exploration of the current lobbying efforts by NAR to bring changes in how commissions are paid and how mortgages are governed, and the potential impact on buyers and agents.
The importance of buyer's agents (00:33:34) Explains the value and challenges of being a buyer's agent, and the need to educate buyers and sellers about their role in the transaction.
Educating buyers and sellers (00:34:30) Emphasizes the need for real estate agents to educate clients about the buying and selling process, and to counter misinformation from the media.
Finding opportunities in a tough market (00:35:32) Shares a quote from Sun Tzu about finding opportunities in problems, and encourages listeners to persevere in the challenging market.
