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

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.

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Chapters

• 0:00 Real Estate Market Overview
• 0:36 Home Price Trends Analysis
• 1:41 Book Pre-Order Announcement
• 3:55 Buyer Sentiment and Strategy Shifts
• 5:17 Investor Adaptation and Episode Closing

Transcript

Speaker 1: 0:01

Welcome back to this week's real estate market update. Today, we're diving into the latest trends shaping the real estate landscape. Stay tuned for an exciting announcement that could transform the way you approach wealth building for good. First up, there's a noticeable dip in home prices across several major metro areas. Specifically, 11 of 50 states' most populous metros are seeing prices fall. This marks the largest drop in nearly two years, with cities like San Antonio, oakland and Jacksonville feeling the impact the most. However, it's not all doom and gloom. On a national scale, home prices are still rising, though at their slowest rate since last summer. What's driving this shift? Experts point to a combination of factors. High mortgage rates, now averaging 6.83%, are continuing to challenge buyers. Additionally, economic uncertainty and higher borrowing costs have made many buyers more cautious. We're also seeing a decrease in home tours and mortgage applications, which has contributed to the slowdown in pending sales. Despite these challenges, new listings are up by nearly 10% compared to last year. This has given buyers more options, but with the current market conditions, they are being more deliberate about their choices, and that certainly does match my experience.

Speaker 1: 1:33

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've only had two showings. Granted, we got very lucky, we got it on the contract. We just got it on the contract this week, very lucky, and that's at 299 sale price. Guys, right, so this isn't the affordable range. This is not so you know and you don't think. Hey, this is a six 700,000 on a house, this is a $300,000 house. We winded up putting it on the contract at $288,000. And I'm paying the agent, so I'm paying the buyer's agent. That gives you an idea of what is really happening in some markets. The Florida markets on the single family side, is really really slow and there's a lot of things going on that point to this part of it. Is all of this, everything that's happening in the stock market the stock market taking a dip, having the worst april since the great depression and the tariffs. That's due to the tariffs talk and everything with tariffs in china and in, in addition to that, people. This creates fear in the markets and this creates fear for buyers. So buyers are scarce and buyers are afraid. They're scarce and afraid and rates are high. Right, so not the best of times for inventory to be going up. So 10% increase in inventory is not going to play well for the market. It won't help it at all.

Speaker 1: 3:12

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Speaker 1: 3:55

Getting back to the market, one of the standout trends is the drop in buyer urgency. I just mentioned that a moment ago. As mortgage rates tick upward, many potential buyers are pausing their searches, hoping for better conditions ahead. This has led to a slowdown in pending sales and many homes are sitting on the market for longer periods. At the same time, sellers are adjusting to this new reality. To remain competitive, they're having to rethink their pricing strategies. Some are lowering their expectations and offering incentives to attract buyers, while others are choosing to wait for more favorable conditions For those looking to purchase. It's a mixed bag. While inventory is up, buyer sentiment remains cautious. Many are facing the reality that higher rates mean higher monthly payments, so they're doing more research and shopping around for the best mortgage deals.

Speaker 1: 4:56

So there is a lot going on and this matches exactly what I am seeing in the market as a real estate investor and when I wear my flipper hat. So, as some of you may or may not know, I buy, fix and flip and I buy add value, right, fix and hold as it pertains to markets like this. In markets like this, I will no longer be flipping until I see a stable market and a stable demand for really for single family. What we are doing is we are doubling down on buying and holding and renting long-term. So there's different strategies for different markets.

Speaker 1: 5:37

I love to hear what your strategy 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 to continue to buy and hold for the long haul and we buy and hold long-term multifamily assets. That's a wrap for this week's Real Estate Market Update. If you found this helpful, be sure to share it with your network and tune in next time for more insights on the latest market trends. And remember, if you're ready to take your growth to the next level, pre-order my upcoming book today for an exclusive ebook gift to kickstart your journey at wealthyafai Pre-launch. Thanks for listening and see you next time. Peace out.