Cash Flow Beats Rate Anxiety: Smart Investing in Today's Cooling Market | Real Estate Market Update w/ Martin Perdomo

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Mortgage rates have finally given us a break, dropping to 6.55% - the lowest we've seen since October of last year. For buyers and investors, this translates to serious purchasing power gains. If you're working with a $3,000 monthly budget, you can now afford a home worth $458,750 compared to just $438,000 when rates peaked in May. That's a $20,000 jump without changing your payment.

But the rate drop is just one piece of what's becoming the perfect investor scenario. We're witnessing a decisive market shift toward buyers. Only 26.6% of homes are selling above asking price (down from 31% last year), inventory is up 8.5% while pending sales have actually decreased, and properties are staying on market an average of 40 days - six days longer than this time last year. Sellers are becoming more flexible, offering closing cost credits and accepting repair requests that would have been dismissed months ago.

The regional differences tell an equally compelling story. While Cleveland leads with a 13% price increase year-over-year, markets like Oakland, Fort Worth, Jacksonville, and Houston are experiencing notable declines. This divergence creates targeted opportunities for strategic investors who understand that national headlines matter less than zip code data. The smart play isn't waiting for rates to hit some magic number - it's locking in solid deals now that cash flow with today's rates, knowing you can always refinance later. Remember that this favorable alignment of lower rates, softening prices, increased inventory, and reduced competition won't last forever. When rates drop further, competition will surge. The time to position yourself isn't tomorrow - it's today.

Want to stay ahead of market shifts and access the funding strategies and exact plays we're running behind the scenes? Follow @theEliteStrategist on Instagram and Facebook for unfiltered market insights that will help you move fast, fund smart, and scale in today's dynamic real estate landscape.

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Episode Transcript

Speaker 1 (00:00):
Welcome back to this week's real estate market update
, where we break down what'sreally happening with prices,
buyers and strategy.
Later in the episode I willtell you how to stay plugged
into the moves we're makingbehind the scenes so you can
move fast, fund smart and scalein today's market.
If you're serious about growingyour real estate portfolio, pay

(00:23):
attention, because this weekwe've got the perfect mix of
conditions.
Mortgage rates just dropped totheir lowest level in nearly a
year, home price growth isslowing and, for the first time
in months, supply is outpacingdemand in several key markets.
If that sounds like opportunityknocking, it is, so let's get

(00:47):
into it.
Let's talk about money.
As of this week, the dailyaverage 30-year fixed mortgage
rate has dropped to 6.55%, thelowest since October of 2024.
That might not sound dramatic,but here's what it means in
practice.
If you're working with a $3,000monthly budget, you can now

(01:11):
afford a home worth $458,750.
Just a few months ago, whenrates hit 7.08 in May, that same
buyer can only afford around$438,000.
That's a $20,000 jump inpurchasing power.
That's the power that interestrates have on real estate.

(01:36):
This rate drop was triggered bya softer than expected jobs
report, which increased thelikelihood of the Fed cutting
rates in September.
It actually increased thelikelihood by 94%.
So, guys, we might have astrong rate cut coming in
September and the marketsalready reacting.

(01:59):
We're seeing increased mortgageactivity and rising demand
indicators.
But here's the catch thiswindow may be not last.
Mortgage rates can swing fastwhen new economic data drops.
So if you're waiting for ratesto drop into the fives, you
could miss your shot at lockingin solid numbers today while

(02:23):
sellers are still willing toplay ball.
Now you can always buy deals,but rates will not always be the
same.
Where am I going with this?
If you're listening and you'rein my community or you're not in
my community, I'm going to giveyou the same advice I give to
people inside of my communityFocus on the deal, don't worry

(02:46):
about the interest rates.
Make sure your deals cash flow,even with today's interest
rates.
If the deals make sense withtoday's interest rate, you can
refinance later.
Now let's talk pricing.
We're seeing clear signs of acooling market.
Seeing clear signs of a coolingmarket.
According to Redfin, the medianasking price only increased

(03:08):
2.3% year over year.
That's one of the slowestgrowth rates in the past two
years.
Sales prices are expected todecline another 1% before
year-end.
Most importantly, only 26.6percent of homes are selling
above asking.
That's a big drop from 31percent this time last year and

(03:34):
in high cost markets like theBay Area, phoenix DC and coastal
Florida, sellers are finallygiving in.
Agents on the ground arereporting deals closing under
asking price.
Some sellers are offeringcredits for closing costs or
repairs.
In other words, the leveragehas shifted.

(03:55):
It is now officially a buyer'smarket.
This is a perfect time to getcreative with your offers,
negotiate terms, ask forconcessions, even explore
interest rate buy downs.
In a market like this, it's notjust about price, it's about
positioning.
Take advantage, because themarket will shift again when

(04:17):
interest rates come down.
Oh and, by the way, they willcome down.
Remember Jay Powell's term endsin May of 2026.
And whoever Trump puts in there, they're going to lower rates.
I can assure you that he'sprobably having that discussion
behind the scenes.

(04:37):
You get the job, but you'reblessed to lower rates.
Inventory is also telling us astory.
Total homes for sale are up8.5% compared to last year,
while pending sales are actuallydown 1.2%.
That means we've officiallycrossed into a market where

(04:59):
there are more sellers thanserious buyers.
The median days in the marketis now 40 days.
That's six days longer than itwas last year, and only about
32% of homes are going on thecontract within two weeks, down
from 36% at this time in 2024.

(05:20):
What does that tell us?
Buyers are slower to act, theyare pickier, they're negotiating
and they're backing away fromlistings that don't meet the
mark.
If you're an investor with cashfunding access or a clear
underwriting model, this iswhere you thrive, while everyone

(05:42):
else is uncertain.
You got to be the solution.
You get to lead.
Let's go regional.
We're seeing metro splitsbetween momentum and pullback.
Cleveland's leading the packwith a 13% price increase year
over year, followed by Detroitand Montgomery County,

(06:02):
pennsylvania.
Meanwhile, oakland, fort Worth,jacksonville and Houston are
all down, some by as much as 5%.
Remember, national headlinesdon't matter as much as zip code
data.
In markets where others arebacking off, smart investors are

(06:22):
negotiating directly withsellers, scooping up undervalued
assets and adding value throughrepositioning.
That's what smart investors do.
If you're investing in Florida,Texas, california or the
Midwest, you need to be watchingthese shifts closely.
That's where the edge lives.

(06:43):
So what's the play Right now?
Mortgage rates are favorable,prices are softening, sellers
are flexible, prices aresoftening, sellers are flexible
and competition is light.
You don't wait for the bottom.
You get ahead of the next waveNow.
This market rewards speed,structure and precision.
If you're ready to expand yourportfolio, tighten your

(07:03):
underwriting and negotiate withconfidence, the moment is right
now.
We're confident.
The moment is right now.
If you want to keep getting theunfiltered truth on this market
the numbers, the fundingstrategies and the exact plays
we are running behind the scenes, follow me on Instagram and
Facebook.
Just search at the EliteStrategist and if this episode

(07:24):
helped you get clear on yournext move, share it with another
investor who needs to hear it.
That's your Wealthy AF marketpulse.
Be strategic, be early, beelite.
Catch you next week, peace out.