Housing Market Shifts | Real Estate Market Update w/ Martin Perdomo

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The housing market standoff has arrived, and the numbers don't lie. After years of seller dominance, the pendulum is swinging decisively toward buyers – regardless of what mainstream real estate voices might claim.

Fresh data reveals new home listings grew just 6.3% year-over-year (the smallest increase in three months), while total inventory sits 14.8% higher than last year. But this increased supply isn't translating to sales. Mortgage applications plummeted 3% week-over-week – the steepest drop since pandemic tracking began. Meanwhile, median home prices inched up only 1.2% to $387,000, with properties selling 1% below asking price on average. Just 28% of homes now sell above list price, down from 32% last year.

What's causing this shift? Two critical factors: stubbornly high mortgage rates hovering around 7% (pushing typical monthly payments to a wallet-crushing $2,829) and unrealistic seller expectations. Many homeowners still cling to pandemic-era premium pricing even as 6.6% of listings face price cuts – up significantly from 4.3% a year ago. The resulting standoff leaves buyers with newfound leverage but still facing affordability ceilings.

This market reality varies dramatically by region. Tampa and Orlando exhibit classic buyer's market conditions with falling listings and extended days on market, while Pennsylvania properties move more quickly. The disconnect between economic reports and ground-level reality highlights why conversations with active realtors and buyers reveal more truth than data alone.

Ready to navigate this shifting landscape with confidence? Follow @EliteStrategist on Instagram for my free rental property deal analyzer, weekly market insights, and upcoming event details. The window of opportunity for strategic buyers is opening – will you be prepared to capitalize when interest rates finally drop?

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Episode Transcript

Speaker 1 (00:00):
Welcome back to this week's real estate market update
.
Today we're diving deep intothe trends shaping the real
estate landscape.
Stay with us Coming up agame-changing opportunity that
can redefine how you grow yourincome, invest with purpose and
fast-track your journey tofinancial freedom.
In the four weeks ending June1st, new home listings rose 6.3%

(00:26):
year over year.
Sounds solid, but there's acatch.
That's the smallest growth ratein three months.
In fact, the second half of Maysaw the sharpest mid-May
decline in new listings in overa decade.
A few standout metros sawactual drops San Jose listings

(00:48):
down nearly 4%.
Orlando down 6.3%.
Tampa Florida off by 3.9%.
That signals something deeper.
Many homeowners who might havelisted are staying put, possibly
due to high mortgage rates oruncertainty about market timing.

(01:13):
Total active listings are stillup 14.8% higher than this time
last year, but momentum isclearly slowing down.
Let's talk buyer behavior.
That's a big problem right now.
Buyers are not coming outbecause of these high interests.

(01:34):
Despite a bump in supply,buyers are still staying
cautious.
Pending home sales dropped0.04% year over year.
Mortgage purchase applicationsfell 3% week over week and price

(01:54):
growth is slowing.
This is the biggest mortgagepurchase applications fall I've
seen since I've been reportingthis since the pandemic week
over week.
A three percent applicationdrop in mortgage applications is
a huge number.
The median home sale price rose1.2 percent year over year to

(02:19):
387 thousand dollars.
Home sold for 1% below askingprice on average, the biggest
discount for this time of theyear since 2020.
There's that data of 2020.
Only 28% of homes sold aboveasking, down from 32% a year ago

(02:43):
.
This shows a subtle butimportant shift.
Buyers are holding the line.
They're no longer chasinginflated prices and they're
negotiating harder.
Meanwhile, price drops areclimbing.
6.6% of active listings had aprice cut up from 4.3% one year

(03:05):
ago.
All of this data tells me totell you that we have shifted in
the market.
We are officially in a buyer'smarket, regardless of what any
realtor or anyone tries to tellyou, what any realtor or anyone

(03:29):
tries to tell you.
The data clearly shows that weare in an official buyer's
market.
If jerome powell doesn't dosomething about these interest
rates, we are going to have aproblem.
Jerome powell needs to cutinterest rates right now.
This is going to create a big,big problem in the housing

(03:52):
market.
This is going to create a hugeproblem for developers.
This is going to create a hugeproblem.
Major decrease in valuations inthe single family space, in the
real estate market as a whole,but more specifically in the
single family space, if thesedarn rates don't come down.

(04:17):
The feds are holding and it'sfreaking stupid and it's hurting
the market.
While mortgage rates are stillhovering around 7%, the typical
monthly payment sits at $2,829,not far from its all-time high.
So even with more homes on themarket, affordability remains a

(04:38):
major ceiling.
We'll get back to the marketaction in just a moment, but
first let's talk about somethingeven more important, which is
your financial future.
If you're tuning in and want totake this beyond the podcast,
head over to my Instagram at theElite Strategist the link in my
bio.
You'll find my free rentalproperty deal analyzer.

(05:00):
This is what I use to runnumbers and make smart buying
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I break down what's reallyhappening in the market and how
it impacts your money moves, andthe latest info on our upcoming
events, so you can get in themarket and how it impacts your
money moves, and the latest infoon our upcoming events so you
can get in the room, askquestions and grow with people

(05:21):
doing the real work.
This isn't surface levelcontent.
It's tools, insights and realstrategies to help you build
well on your terms.
Tap and follow at EliteStrategist or visit our website,
wealthyafmedia, to learn how wehelp you go from unsure to

(05:44):
unstoppable.
Now back to the headlines.
What's this adding up to guys?
We're in a standoff, literally.
Sellers are flooding the market, but they're also not holding
the same pricing power.
Barriers are being selective,slower to act and more price
sensitive.
Even with inventory up guys up,listen to what I just said up

(06:07):
14.8%.
The market isn't swinging fullyto buyers.
I disagree with that.
I believe the market hascompletely swung over to buyers.
It has completely swung over tobuyers.
Properties are sitting on themarket for days on end.
You're seeing properties go onthe market significantly lower

(06:27):
than they were a year ago insome areas.
Instead, we're seeing what thisarticle saying is.
Instead, we're seeing a narrowwindow where buyers have
slightly more leverage, but onlyif they move smart and
negotiate right.
Buyers have significantly moreleverage, not slightly,
according to Redfin.
They're saying slightly.

(06:49):
I disagree with Redfin's report.
I think buyers havesignificantly more leverage.
So if you're a buyer out there,the time for you to go and
pounce is actually now, becausewhen jay powell comes down and
brings the rates back down andhe must and he will.
He has no choice.
He's crushing the economy.

(07:09):
We're seeing unemployment.
We're seeing new jobs excuse me, not unemployment.
We saw new job creation for themonth of may, the slowest since
in 10 years the slowest in 10years.
That is not good.
Redfin's lead economist, chenzhao, put it plainly the market
is tilting slightly in favor ofbuyers.

(07:31):
For this first time in years,the market has already slipped.
It tilted into in favor ofbuyers.
For the first time in years,the market has already tilted
into the favor of buyers.
Totally disagree with you, mrEconomist.
See, the problem witheconomists is that these guys
sit behind a desk and they lookat data all day and they're not
in the real world doing realthings, talking to real people,
and they're just looking at data, data, and they think that the

(07:54):
data reflects what's happeningin real life and the data is
just an indication of what'shappening.
But what's happening, it'swhat's happening when you're
talking to real people in themarket doing real deals and real
buyers in the market reallylooking to buy, and you listen
to their sentiments.

(08:15):
Then you talk to the realtorsand the realtors tell you what's
really happening in the market.
That's what really counts.
So a lot of these economists isgreat.
You guys give us data, you guysgive predictions, but you're
not out there taking the scarslike those of us that are in the
mix actually doing it.
But it's not a buyer's marketyet.
According to this guy, manysellers still expect

(08:36):
pandemic-era premiums and,unless they adjust listings,
could sit longer and requiremore price cuts.
Totally agree, some sellers aredoing that, but we're already
seeing price cuts, tremendousprice cuts.
In short, if you're buying, theopportunity and patience for
you is right now, and if you'reselling, know you're going to be

(08:59):
sitting for longer.
Your competition is droppingprice, which is going to
eventually force you to dropprices.
Be careful out there.
Enjoy, by the way, fulldisclosure.
This is not in all the markets.
This is't certain markets.
I'm giving you an overarchingtheme of what's happening in the
market.
I can tell you that I play intwo markets.

(09:20):
I play in the Tampa Bay areamarket.
In the Tampa market, this isdefinitely what's happening, but
in the Pennsylvania market itis not right.
When I go to the NortheastPennsylvania and I'm doing deals
there, that is not the storythere.
We are moving properties therefaster.
It's not like it used to, butthings are moving faster.

(09:42):
So please take this in a grainof salt.
It is market to marketdependent over all.
The fundamentals are thefundamentals when rates go up,
prices must go down, and we'renot seeing prices go down.
But what we are seeing is, whenrates go up and they're up

(10:04):
sustainably for longer, as JayPowell says, higher for longer,
we're seeing prices start todecrease.
We're starting to see somecracks in the foundation.
So the fundamentals are thefundamentals Rates go up, prices
must come down, but what we'reseeing is we're not seeing
necessarily prices crashing down, but we're seeing buyer demand

(10:30):
slowed way down.
We know that because inventoryis up 14.8% and we're also
seeing what that's going tocause is, as inventory goes up,
we're going to have to seeprices come down.
The only thing that can fix thisissue is two things Prices come
down and interest rates comedown.

(10:51):
I think prices have come downsome.
In some markets they can comedown a little bit more.
Prices come down.
I think prices have come downsome.
In some markets they can comedown a little bit more.
Prices come down, interestrates come down and, voila, the
market goes on fire again, andthen we'll pass the
post-pandemic era that we had.
That's a wrap for this week'sreal estate market update.

(11:13):
I had a lot to say today.
I haven't come on in a while.
If this helped shift yourperspective or sharpen your
strategy, share it with someonewho needs to hear it and when
you're ready for more tools,insights and real conversations,
head over to at EliteStrategist on Instagram.
Follow me and hit the link inthe bio and tap into everything
we've got going on.
Thanks for listening.

(11:33):
I'll see you next time.
Peace out.
Follow me and hit the link inthe bio and tap into everything
we've got going on.
Thanks for listening.
I'll see you next time.
Peace out.