WSJ What’s News – "Why the Housing Market Is Swinging in Buyers’ Favor"

Date: February 2, 2026
Host: Alex Osola, The Wall Street Journal

Episode Overview

This episode explores pressing developments in business and finance, zeroing in on the evolving U.S. housing market and how shifts are giving buyers increased leverage. Alongside these market insights, the episode spotlights major headlines including the impacts of the latest government shutdown, high-profile investment risks for pension funds, volatility in commodity markets, fee reductions by Vanguard, and significant corporate updates from Disney and Devon Energy.

Key Discussion Points & Insights

1. Government Shutdown and Economic Data Delays

• Impact: The January jobs report is delayed due to a government shutdown, marking the second BLS work stoppage in five months.

• Market Repercussions: Investors lose access to comprehensive economic data, making decision-making more opaque.

  • Quote:
    “When you’re not getting these reports, you are trying to piece together a puzzle that's always going to be a bit incomplete.”
    — Matt Grossman, [01:59]

• Legislative Outlook: A vote to restore funding is expected soon, with only partial shutdown effects; some agencies remain operational (e.g., national parks open, IRS employees exempt from furloughs through Saturday).

• Other Updates: Progress on trade relations with India, U.S. rare-earths stockpile initiative (Project Vault), and U.S.-Iran diplomatic overtures.

2. High-Risk Private Market Investments by Pension Funds

• Case Study: Michigan’s $16 billion pension fund lost $86 million on a Hawaiian coffee farm and $53 million on a Swiss renewable energy venture.
• Trend: U.S. pension funds are increasingly shifting investments from public to private markets, seeking lower fees via direct projects.
  • Stats: $1.3 trillion in private assets by 2024, up from $200 billion in 2005.
  • Risks: Illiquidity and lack of transparency can lock money up for years with limited recourse when things go wrong.
  • Quote:
    “This is just a much more... wild west type of investing than public markets.”
    — Heather Gillers, [00:33]/[06:04]
  • Legal Actions: The pension fund is suing the manager of the failed renewable fuels project; outcomes remain uncertain.

3. Market Updates

• Indexes: Dow up 1.1%; silver and gold down 1.9%; sharp swings in commodity prices.

• Vanguard Fee Cuts: Vanguard reduces fees on a quarter of its U.S. funds, dropping the average expense ratio to 0.06%, saving clients $600 million with recent rounds.

  • Impact: Continued movement toward low-cost investing for individuals.

• CBOE Options News: CBOE in talks to relaunch "all or nothing" options contracts to compete with prediction markets; reflects growing investor appetite for risk.

4. Housing Market: Turning Toward Buyers

• Current State: Home sales are at a 30-year low as high mortgage rates and prices have sidelined many buyers.

• Bargains Emerge: 62% of buyers purchased below list price in the past year, the highest share since 2019.

• Buyer Leverage: Limited competition means buyers are able to negotiate better deals; sellers’ willingness to negotiate is key.

  • Quote:
    "For the buyers who are left who can afford homes, they have a lot more leverage. The homes that are selling are the homes where the sellers are willing to negotiate.”
    — Nicole Friedman, [10:16]

• Outlook:
  “For the spring, I think the big question is how much are sellers going to be flexible—maybe be willing to cut their prices or offer other concessions or incentives to buyers?”
  — Nicole Friedman, [10:38]

5. Major Corporate News

• Devon Energy / Kotera Energy Merger: Devon Energy acquires Kotera Energy for $22 billion, consolidating their dominance in the Permian Basin.
• Disney's Mixed Earnings: Streaming profits rise, but overall net income falls by 6%. Stock slips 7.4% amid warnings on slower growth tied to higher sports rights costs and international tourism declines.
  • Leadership Transition: The board to vote on Bob Iger’s successor as CEO.
  • Quote:
    “Trying to preserve the status quo was a mistake, and I'm certain that my successor will not do that.”
    — Bob Iger, [11:41]

Notable Quotes & Memorable Moments

• Heather Gillers on Private Markets:
  "This is just a much more wild west type of investing than public markets." [00:33]/[06:04]

• Matt Grossman on Delayed Economic Data:
  “When you're not getting these reports, you are trying to piece together a puzzle that's always going to be a bit incomplete.” [01:59]

• Nicole Friedman on Housing Market:
  "For the buyers who are left who can afford homes, they have a lot more leverage.” [10:16]

• Bob Iger on Disney’s Future:
  "Trying to preserve the status quo was a mistake, and I'm certain that my successor will not do that.” [11:41]

Timestamps for Key Segments

• [00:52] – Government shutdown & delayed jobs report
• [06:04] – Pension funds' risky bets in private markets
• [08:30] – Market and major company updates
• [09:25] – Housing market gives buyers more leverage (Nicole Friedman)
• [10:52] – Devon-Kotera deal & Disney’s earnings/leadership
• [11:41] – Bob Iger on Disney transition

This episode provides context and analysis for major financial and business trends, with a standout focus on how conditions now favor homebuyers, underlining broader shifts in market leverage and investment risk.