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

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.

Chapters

• 0:00 Market Update Introduction
• 0:49 Mortgage Rates and Purchasing Power
• 2:57 Cooling Home Prices Trend
• 4:44 Rising Inventory and Buyer Leverage
• 5:49 Regional Market Differences
• 6:45 Strategic Action Steps

Transcript

Speaker 1: 0:00

Welcome back to this week's real estate market update, where we break down what's really happening with prices, buyers and strategy. Later in the episode I will tell you how to stay plugged into the moves we're making behind the scenes so you can move fast, fund smart and scale in today's market. If you're serious about growing your real estate portfolio, pay attention, because this week we've got the perfect mix of conditions. Mortgage rates just dropped to their lowest level in nearly a year, home price growth is slowing and, for the first time in months, supply is outpacing demand in several key markets. If that sounds like opportunity knocking, it is, so let's get into it.

Speaker 1: 0:49

Let's talk about money. As of this week, the daily average 30-year fixed mortgage rate has dropped to 6.55%, the lowest since October of 2024. That might not sound dramatic, but here's what it means in practice. If you're working with a $3,000 monthly budget, you can now afford a home worth $458,750. Just a few months ago, when rates hit 7.08 in May, that same buyer can only afford around $438,000. That's a $20,000 jump in purchasing power. That's the power that interest rates have on real estate. This rate drop was triggered by a softer than expected jobs report, which increased the likelihood of the Fed cutting rates in September. It actually increased the likelihood by 94%. So, guys, we might have a strong rate cut coming in September and the markets already reacting. We're seeing increased mortgage activity and rising demand indicators. But here's the catch this window may be not last. Mortgage rates can swing fast when new economic data drops. So if you're waiting for rates to drop into the fives, you could miss your shot at locking in solid numbers today while sellers are still willing to play 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're in my community or you're not in my community, I'm going to give you the same advice I give to people inside of my community Focus on the deal, don't worry about the interest rates. Make sure your deals cash flow, even with today's interest rates. If the deals make sense with today's interest rate, you can refinance later.

Speaker 1: 2:57

Now let's talk pricing. We're seeing clear signs of a cooling market. Seeing clear signs of a cooling market. According to Redfin, the median asking price only increased 2.3% year over year. That's one of the slowest growth rates in the past two years. Sales prices are expected to decline another 1% before year-end. Most importantly, only 26.6 percent of homes are selling above asking. That's a big drop from 31 percent this time last year and in high cost markets like the Bay Area, phoenix DC and coastal Florida, sellers are finally giving in. Agents on the ground are reporting deals closing under asking price. Some sellers are offering credits for closing costs or repairs. In other words, the leverage has shifted. It is now officially a buyer's market.

Speaker 1: 4:00

This is a perfect time to get creative with your offers, negotiate terms, ask for concessions, even explore interest rate buy downs. In a market like this, it's not just about price, it's about positioning. Take advantage, because the market will shift again when interest rates come down. Oh and, by the way, they will come down. Remember Jay Powell's term ends in May of 2026. And whoever Trump puts in there, they're going to lower rates. I can assure you that he's probably having that discussion behind the scenes. You get the job, but you're blessed to lower rates.

Speaker 1: 4:44

Inventory is also telling us a story. Total homes for sale are up 8.5% compared to last year, while pending sales are actually down 1.2%. That means we've officially crossed into a market where there are more sellers than serious buyers. The median days in the market is now 40 days. That's six days longer than it was last year, and only about 32% of homes are going on the contract within two weeks, down from 36% at this time in 2024. What does that tell us? Buyers are slower to act, they are pickier, they're negotiating and they're backing away from listings that don't meet the mark.

Speaker 1: 5:33

If you're an investor with cash funding access or a clear underwriting model, this is where you thrive, while everyone else is uncertain. You got to be the solution. You get to lead. Let's go regional. We're seeing metro splits between momentum and pullback. Cleveland's leading the pack with a 13% price increase year over year, followed by Detroit and Montgomery County, pennsylvania. Meanwhile, oakland, fort Worth, jacksonville and Houston are all down, some by as much as 5%. Remember, national headlines don't matter as much as zip code data.

Speaker 1: 6:19

In markets where others are backing off, smart investors are negotiating directly with sellers, scooping up undervalued assets and adding value through repositioning. That's what smart investors do. If you're investing in Florida, Texas, california or the Midwest, you need to be watching these shifts closely. That's where the edge lives. So what's the play Right now? Mortgage rates are favorable, prices are softening, sellers are flexible, prices are softening, sellers are flexible and competition is light.

Speaker 1: 6:52

You don't wait for the bottom. You get ahead of the next wave Now. This market rewards speed, structure and precision. If you're ready to expand your portfolio, tighten your underwriting and negotiate with confidence, the moment is right now. We're confident. The moment is right now. If you want to keep getting the unfiltered truth on this market the numbers, the funding strategies and the exact plays we are running behind the scenes, follow me on Instagram and Facebook. Just search at the Elite Strategist and if this episode helped you get clear on your next move, share it with another investor who needs to hear it. That's your Wealthy AF market pulse. Be strategic, be early, be elite. Catch you next week, peace out.