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

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?

Chapters

• 0:00 Real Estate Market Update Introduction

Transcript

Speaker 1: 0:00

Welcome back to this week's real estate market update. Today we're diving deep into the trends shaping the real estate landscape. Stay with us Coming up a game-changing opportunity that can redefine how you grow your income, invest with purpose and fast-track your journey to financial freedom. In the four weeks ending June 1st, new home listings rose 6.3% year over year. Sounds solid, but there's a catch. That's the smallest growth rate in three months. In fact, the second half of May saw the sharpest mid-May decline in new listings in over a decade. A few standout metros saw actual drops San Jose listings down nearly 4%. Orlando down 6.3%. Tampa Florida off by 3.9%. That signals something deeper. Many homeowners who might have listed are staying put, possibly due to high mortgage rates or uncertainty about market timing. Total active listings are still up 14.8% higher than this time last year, but momentum is clearly slowing down.

Speaker 1: 1:27

Let's talk buyer behavior. That's a big problem right now. Buyers are not coming out because of these high interests. Despite a bump in supply, buyers are still staying cautious. Pending home sales dropped 0.04% year over year. Mortgage purchase applications fell 3% week over week and price growth is slowing. This is the biggest mortgage purchase applications fall I've seen since I've been reporting this since the pandemic week over week. A three percent application drop in mortgage applications is a huge number.

Speaker 1: 2:13

The median home sale price rose 1.2 percent year over year to 387 thousand dollars. Home sold for 1% below asking price on average, the biggest discount for this time of the year since 2020. There's that data of 2020. Only 28% of homes sold above asking, down from 32% a year ago. This shows a subtle but important shift. Buyers are holding the line. They're no longer chasing inflated prices and they're negotiating harder. Meanwhile, price drops are climbing. 6.6% of active listings had a price cut up from 4.3% one year ago. All of this data tells me to tell you that we have shifted in the market. We are officially in a buyer's market, regardless of what any realtor or anyone tries to tell you, what any realtor or anyone tries to tell you. The data clearly shows that we are in an official buyer's market.

Speaker 1: 3:31

If jerome powell doesn't do something about these interest rates, we are going to have a problem. Jerome powell needs to cut interest rates right now. This is going to create a big, big problem in the housing market. This is going to create a huge problem for developers. This is going to create a huge problem. Major decrease in valuations in the single family space, in the real estate market as a whole, but more specifically in the single family space, if these darn rates don't come down. The feds are holding and it's freaking stupid and it's hurting the market. While mortgage rates are still hovering around 7%, the typical monthly payment sits at $2,829, not far from its all-time high. So even with more homes on the market, affordability remains a major ceiling.

Speaker 1: 4:40

We'll get back to the market action in just a moment, but first let's talk about something even more important, which is your financial future. If you're tuning in and want to take this beyond the podcast, head over to my Instagram at the Elite Strategist the link in my bio. You'll find my free rental property deal analyzer. This is what I use to run numbers and make smart buying decisions, totally free. A quick way to sign up for my weekly newsletter. I break down what's really happening in the market and how it impacts your money moves, and the latest info on our upcoming events, so you can get in the market and how it impacts your money moves, and the latest info on our upcoming events so you can get in the room, ask questions and grow with people doing the real work. This isn't surface level content. It's tools, insights and real strategies to help you build well on your terms. Tap and follow at Elite Strategist or visit our website, wealthyafmedia, to learn how we help you go from unsure to unstoppable.

Speaker 1: 5:45

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 14.8%. The market isn't swinging fully to buyers.

Speaker 1: 6:12

I disagree with that. I believe the market has completely swung over to buyers. It has completely swung over to buyers. Properties are sitting on the market for days on end. You're seeing properties go on the market significantly lower than they were a year ago in some areas. Instead, we're seeing what this article saying is. Instead, we're seeing a narrow window where buyers have slightly more leverage, but only if they move smart and negotiate right. Buyers have significantly more leverage, not slightly, according to Redfin. They're saying slightly.

Speaker 1: 6:49

I disagree with Redfin's report. I think buyers have significantly more leverage. So if you're a buyer out there, the time for you to go and pounce is actually now, because when jay powell comes down and brings the rates back down and he must and he will. He has no choice. He's crushing the economy. We're seeing unemployment. We're seeing new jobs excuse me, not unemployment. We saw new job creation for the month of may, the slowest since in 10 years the slowest in 10 years. That is not good. Redfin's lead economist, chen zhao, put it plainly the market is tilting slightly in favor of buyers. For this first time in years, the market has already slipped. It tilted into in favor of buyers. For the first time in years, the market has already tilted into the favor of buyers.

Speaker 1: 7:39

Totally disagree with you, mr Economist. See, the problem with economists is that these guys sit behind a desk and they look at data all day and they're not in the real world doing real things, talking to real people, and they're just looking at data, data, and they think that the data reflects what's happening in real life and the data is just an indication of what's happening. But what's happening, it's what's happening when you're talking to real people in the market doing real deals and real buyers in the market really looking to buy, and you listen to their sentiments. Then you talk to the realtors and the realtors tell you what's really happening in the market. That's what really counts. So a lot of these economists is great. You guys give us data, you guys give predictions, but you're not out there taking the scars like those of us that are in the mix actually doing it. But it's not a buyer's market yet.

Speaker 1: 8:33

According to this guy, many sellers still expect pandemic-era premiums and, unless they adjust listings, could sit longer and require more price cuts. Totally agree, some sellers are doing that, but we're already seeing price cuts, tremendous price cuts. In short, if you're buying, the opportunity and patience for you is right now, and if you're selling, know you're going to be sitting for longer. Your competition is dropping price, which is going to eventually force you to drop prices. Be careful out there. Enjoy, by the way, full disclosure.

Speaker 1: 9:08

This is not in all the markets. This is't certain markets. I'm giving you an overarching theme of what's happening in the market. I can tell you that I play in two markets. I play in the Tampa Bay area market. In the Tampa market, this is definitely what's happening, but in the Pennsylvania market it is not right. When I go to the Northeast Pennsylvania and I'm doing deals there, that is not the story there. We are moving properties there faster. It's not like it used to, but things are moving faster. So please take this in a grain of salt. It is market to market dependent over all.

Speaker 1: 9:49

The fundamentals are the fundamentals when rates go up, prices must go down, and we're not seeing prices go down. But what we are seeing is, when rates go up and they're up sustainably for longer, as Jay Powell says, higher for longer, we're seeing prices start to decrease. We're starting to see some cracks in the foundation. So the fundamentals are the fundamentals Rates go up, prices must come down, but what we're seeing is we're not seeing necessarily prices crashing down, but we're seeing buyer demand slowed way down. We know that because inventory is up 14.8% and we're also seeing what that's going to cause is, as inventory goes up, we're going to have to see prices come down.

Speaker 1: 10:44

The only thing that can fix this issue is two things Prices come down and interest rates come down. I think prices have come down some. In some markets they can come down a little bit more. Prices come down. I think prices have come down some. In some markets they can come down a little bit more. Prices come down, interest rates come down and, voila, the market goes on fire again, and then we'll pass the post-pandemic era that we had. That's a wrap for this week's real estate market update. I had a lot to say today. I haven't come on in a while. If this helped shift your perspective or sharpen your strategy, share it with someone who needs to hear it and when you're ready for more tools, insights and real conversations, head over to at Elite Strategist on Instagram. Follow me and hit the link in the bio and tap into everything we've got going on. Thanks for listening. I'll see you next time. Peace out. Follow me and hit the link in the bio and tap into everything we've got going on. Thanks for listening. I'll see you next time. Peace out.