Buyers Now Have the Upper Hand as Seller-Buyer Gap Hits 10-Year High | Real Estate Market Update w/ Martin Perdomo

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The real estate landscape is shifting dramatically as mortgage rates ease to a 10-month low of 6.58%, creating a strategic window of opportunity for savvy investors. This pivotal moment represents the calm before what promises to be a resurgent market in 2025, offering a rare advantage for those with acquisition capital ready to deploy.

What makes this moment extraordinary is the historic imbalance between market participants. Currently, there are 36% more sellers than buyers—the largest disconnect since 2013. This pressure has caused nearly 14,000 sellers to pull their listings between May and July alone, creating unprecedented negotiating leverage for prepared buyers. As pending home sales tick up 1.6% year-over-year and buyer demand indices begin to rise, the signs of a market transition are unmistakable.

The smart play? Secure properties that cash flow at today's higher rates, knowing refinancing opportunities are on the horizon. Financial institutions are already underwriting loans with anticipated rate cuts factored in, signaling confidence in lower rates ahead. The fundamental principle remains true: you date the interest rate but marry the property. Properties performing adequately at 7-7.5% interest will generate exceptional returns when refinanced at the projected 5.75% within the next two years. This buy-now, refinance-later strategy positions investors to benefit from both current buyer leverage and future appreciation as the market inevitably heats up.

Don't miss this transitional period before competition intensifies again. For regular market insights, deal breakdowns, and exclusive strategies, follow @EliteStrategist on Instagram, TikTok, and YouTube. The future looks bright for those who recognize and act on this strategic opportunity.

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Episode Transcript

Speaker 1 (00:00):
Mortgage rates are easing.
The average 30-year fixed ratedropped to 6.58%, a 10-month low
.
That's nudging buyers off thesidelines.
What's up?
Wealthy AF, martin Perdomo herethe Elite Strategist, and this
week's real estate market update?
It's all about shiftingmomentum.
Pending home sales are up 1.6%year over year and Redfin's Home

(00:23):
Bu home buyer demand index istracking tours and buying
consults is ticking higher,alongside home tour activity as
well.
Agents report a growingconfidence.
Some buyers are acting now,while others still waiting for
further rate drops.

(00:44):
But make no mistake, the windowis open and it's opening even
wider For investors.
Low rates are reigniting demand, baby, that's right.
This excites me.
This really excites me.
If you got acquisition capitalnow's when you want to put it to
work.
The landscape is looking evenclearer.

(01:07):
On the supply side.
There are now 36% more sellersthan buyers, the largest
disconnect since 2013.
You heard me right 36% moresellers than buyers, the largest

(01:28):
disconnect since 2013.
Sellers are feeling thepressure.
Nearly 14,000 fell off marketfrom May to July.
Okay, where's your opportunity?
Your opportunity to buy isright now.
Guys, I'm making a bet that therates are going to drop next
year.
I've been saying this for awhile.
I was hoping that they woulddrop.

(01:49):
They would have dropped some bynow, but now for sure we know
they're going to drop this lastquarter of 2025.
And next year this time weshould be at least one point
lower.
That means go out, buy right,because, remember, you make your
money when you buy.
You date the interest rate andyou marry the property.
Buy now If your property's cashflow in today's market it's

(02:14):
going to be a walk in the park.
I already called my banker andsaid hey, I have some of these
loans at 7.5%, commercial loans,that for properties that I
bought last year, 23 and refiedin 24.
How are you guys looking?
How are you underwriting?
So I'm already having thosediscussion with my, with my

(02:35):
lenders.
I'm going to suggest that youstart having those discussions
as well.
But the rates are coming down.
She already told me thatthey're underwriting.
So small community bank, butthey're already underwriting
with a quarter percent rate cut,already underwriting this week,
right now.
This was maybe an hour ago fromthe time of the recording of

(02:56):
this podcast on August 28th.
So just a little insight foryou, my listeners.
Right, I'm giving you the edge.
They already are underwriting.
I got another property.
I'm refinancing that service toa DSCR loan, which I got a rate
of 6.87%, and just last month Ihad refinanced a property and I

(03:18):
got a seven and a quarterpercent.
So just to give you an idea,rates are coming down, which
means higher cash flow.
The numbers work, which in turnmeans higher prices.
Prices will come up.
It's the fundamentals.
Okay, back to this.
With fewer buyers committed andmore and more options are

(03:40):
available, sellers are pullinglistings, some are delaying,
some decided to rent out instead.
Again, if you're a buyer in themarket, this is an opportunity
for you to go out there and makeyour offers, and sometimes
you'll be able to get away withmaking some not so much
respectful offers right nowbecause they're just not getting
any action.
But that's going to tilt soon.

(04:03):
I believe by next spring themarket will change and we'll be
in a hot market again.
The balance has tilted.
My friends, this is not just acooling market, it's a strategic
opportunity.
Drop in with structured offersand creative funding and you're
likely to negotiate better terms.

(04:25):
So, like I mentioned a momentago, there's opportunities right
now.
Opportunities right now forcreative finance, deal
opportunities right now to buyright at a lower price and just
even if you make less cash flow,then you go next year and refi
it.
That's the strategy.
That's the strategy I'mteaching my students right now
is to buy right.
Make sure you underwriteconservative now, because think
about go next year and refi it.
That's the strategy.
That's the strategy I'mteaching my students right now

(04:46):
is to buy right.
Make sure you underwriteconservative now, because think
about it, guys.
If the numbers make sense today,with seven, seven and a half
percent interest rates, whatwill it be?
How will that property cashflowin two years from now when the
rates are 5.75?
Quote me on that.
I believe we're going to leveloff between five and a quarter

(05:07):
and 5.75% interest rate.
That's a fair number.
The economy stays steady andeverybody is.
You know money is not supercheap, money is not super high,
but that's a good number.
Quick summary the mortgagerates are easing, buyers are
creeping back, seller activityis pulling back, inventory

(05:28):
remains, but bargaining roomgrows.
If you've lined up funding andhave a clear underwriting model,
the scales are tipping in yourfavor.
My friend, if you want to stayup to date with these shifts in
real time and get first accessas my book launch approaches,

(05:49):
make sure you're following me onIG, on Instagram, tiktok.
I'm on TikTok now, guys, somake sure you go, follow me over
there, I'll follow you back andYouTube at Elite Strategist,
I'm sharing behind the scenesinsights, deal breakdowns and
strategies that don't make itinto the headlines.
That's this week's real estatemarket update.

(06:10):
Be strategic, be early and beelite.
Stay focused.
The future looks bright.
Peace out.