Home Prices Dip in Major Metros: What Investors Need to Know | Real Estate Market Update w/ Martin Perdomo

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The landscape of real estate is shifting beneath our feet. In this market update, we uncover the surprising trend of falling home prices across 11 major metropolitan areas—the largest drop we've seen in nearly two years. Cities like San Antonio, Oakland, and Jacksonville are feeling the squeeze most acutely, while national prices continue to rise, albeit at their slowest pace since last summer.

Drawing from my own investing experience, I share the eye-opening reality of today's market: a $299,000 property in St. Petersburg received just two showings in three weeks before finally going under contract at $288,000. This isn't happening in luxury markets—this is the supposedly affordable range where most Americans shop. The perfect storm of high mortgage rates (now averaging 6.83%), economic uncertainty, stock market volatility, and tariff concerns has created a climate where "buyers are scarce and afraid."

Despite inventory climbing by nearly 10% compared to last year, buyer urgency has evaporated. As a seasoned real estate investor, I'm adapting my strategy accordingly—pressing pause on flipping properties while doubling down on buy-and-hold multifamily investments for long-term growth. The market demands this pivot, and those who recognize and respond to these shifts will find opportunities even in challenging conditions.

Ready to transform your approach to wealth building? Pre-order my upcoming book focused on growth, resilience, and creating lasting prosperity at wealthyaf.ai/pre-launch. You'll receive a free e-book packed with actionable insights to jumpstart your journey. This isn't just information—it's your roadmap to navigating today's complex real estate landscape with confidence.

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Episode Transcript

Speaker 1 (00:01):
Welcome back to this week's real estate market update
.
Today, we're diving into thelatest trends shaping the real
estate landscape.
Stay tuned for an excitingannouncement that could
transform the way you approachwealth building for good.
First up, there's a noticeabledip in home prices across
several major metro areas.
Specifically, 11 of 50 states'most populous metros are seeing

(00:25):
prices fall.
This marks the largest drop innearly two years, with cities
like San Antonio, oakland andJacksonville feeling the impact
the most.
However, it's not all doom andgloom.
On a national scale, homeprices are still rising, though
at their slowest rate since lastsummer.

(00:46):
What's driving this shift?
Experts point to a combinationof factors.
High mortgage rates, nowaveraging 6.83%, are continuing
to challenge buyers.
Additionally, economicuncertainty and higher borrowing
costs have made many buyersmore cautious.
We're also seeing a decrease inhome tours and mortgage

(01:07):
applications, which hascontributed to the slowdown in
pending sales.
Despite these challenges, newlistings are up by nearly 10%
compared to last year.
This has given buyers moreoptions, but with the current
market conditions, they arebeing more deliberate about

(01:28):
their choices, and thatcertainly does match my
experience.
We currently have, as we speak,a property on the market in the
St Petersburg Florida market,and it's been on the market for
three weeks and, guys, we'veonly had two showings.
Granted, we got very lucky, wegot it on the contract.

(01:50):
We just got it on the contractthis week, very lucky, and
that's at 299 sale price.
Guys, right, so this isn't theaffordable range.
This is not so you know and youdon't think.
Hey, this is a six 700,000 on ahouse, this is a $300,000 house
.
We winded up putting it on thecontract at $288,000.

(02:11):
And I'm paying the agent, soI'm paying the buyer's agent.
That gives you an idea of whatis really happening in some
markets.
The Florida markets on thesingle family side, is really
really slow and there's a lot ofthings going on that point to
this part of it.
Is all of this, everythingthat's happening in the stock

(02:34):
market the stock market taking adip, having the worst april
since the great depression andthe tariffs.
That's due to the tariffs talkand everything with tariffs in
china and in, in addition tothat, people.
This creates fear in themarkets and this creates fear
for buyers.
So buyers are scarce and buyersare afraid.

(02:55):
They're scarce and afraid andrates are high.
Right, so not the best of timesfor inventory to be going up.
So 10% increase in inventory isnot going to play well for the
market.
It won't help it at all.
Before we continue, let's take aquick break.
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Now back to your real estatemarket update.
Getting back to the market, oneof the standout trends is the

(03:59):
drop in buyer urgency.
I just mentioned that a momentago.
As mortgage rates tick upward,many potential buyers are
pausing their searches, hopingfor better conditions ahead.
This has led to a slowdown inpending sales and many homes are
sitting on the market forlonger periods.
At the same time, sellers areadjusting to this new reality.

(04:23):
To remain competitive, they'rehaving to rethink their pricing
strategies.
Some are lowering theirexpectations and offering
incentives to attract buyers,while others are choosing to
wait for more favorableconditions For those looking to
purchase.
It's a mixed bag.
While inventory is up, buyersentiment remains cautious.

(04:45):
Many are facing the realitythat higher rates mean higher
monthly payments, so they'redoing more research and shopping
around for the best mortgagedeals.
So there is a lot going on andthis matches exactly what I am
seeing in the market as a realestate investor and when I wear

(05:05):
my flipper hat.
So, as some of you may or maynot know, I buy, fix and flip
and I buy add value, right, fixand hold as it pertains to
markets like this.
In markets like this, I will nolonger be flipping until I see
a stable market and a stabledemand for really for single

(05:27):
family.
What we are doing is we aredoubling down on buying and
holding and renting long-term.
So there's different strategiesfor different markets.
I love to hear what yourstrategy for this market is.
As for us and our company,we're going to put a pause on
flipping for now.
However, we are going tocontinue to buy and hold for the

(05:49):
long haul and we buy and holdlong-term multifamily assets.
That's a wrap for this week'sReal Estate Market Update.
If you found this helpful, besure to share it with your
network and tune in next timefor more insights on the latest
market trends.
And remember, if you're readyto take your growth to the next
level, pre-order my upcomingbook today for an exclusive

(06:09):
ebook gift to kickstart yourjourney at wealthyafai
Pre-launch.
Thanks for listening and seeyou next time.
Peace out.