Strategies for Success in a Thriving Housing Market | Real Estate Market Update w/ Martin Perdomo

Discover the secrets behind a 12.1% surge in U.S. pending home sales and what it means for your financial strategy. Has the post-election boom truly revitalized the housing market, or is this just a seasonal illusion? Join me, Martin Perdomo, on Wealthy AF as we dissect the current market dynamics, from the flood of mortgage applications to early indicators of a potential slowdown. As mortgage rates dip to 6.95%, we explore whether these trends hint at a lasting recovery or are simply an ephemeral uptick. Prepare yourself with the insights you need to make strategic decisions in this ever-evolving landscape.

Switching gears to the multifamily real estate sector, we dive into the $11 billion apartment sales boom in October and what’s fueling institutional confidence. Despite a slight dip in prices, cities like Boston and Washington D.C. showcase robust sales volumes and low vacancy rates, promising long-term rent growth potential. However, my personal observations in Pennsylvania and Tampa reveal a different story, with rising vacancies and slower rental turnover. Tune in to understand these regional disparities and learn how to navigate the complexities of the multifamily market to stay ahead in these transformative times.

Transcript

Speaker 1: 0:00

Welcome back to Wealthy AF, where we break down the latest trends on personal development, entrepreneurship and wealth building. I'm your host, martin Perdomo, and today we're diving into the numbers and the trends, the opportunities that could change your financial future in 2025. Stay tuned and this is an episode you don't want to miss. Here's what you need to know about the us pending home sales. They just surge to 12.1 percent year over year, marking the biggest jump since may of 2021. But what's driving the sudden boom and will it? Let's break it down in this episode of Wealthy AF. First, the post-election boom Home tours spiked in the two weeks following the presidential election, leading to increases in early stage demand. The surge in activity, combined with the fact that we're comparing to a slower period last year around Thanksgiving, gives us that impressive 12.1% increase in pending sales. But here's the kicker Mortgage purchase applications are up 52% from last year and 12% from last week, signaling some real momentum in the market. On the selling side, new listings jumped 10.6%, another sign of a potential shift. However, there's some caution here. While the numbers look great, early stage demand indicators like Redfin Homebuyers Demand Index are showing signs of slowing, 5% down from a month ago. What does this all mean for the housing market? Are we in for a lasting recovery or just a holiday season illusion? Only time will tell. Keep your eye on mortgage rates, which just dipped to 6.95%, and how the market performs in the next few weeks to see if this trend sticks around.

Speaker 1: 2:00

For all my listeners looking to capitalize on these market shifts, remember that timing and strategy is key. Before we dive deeper, let me ask you are you feeling stuck in today's market, not sure how to navigate these high rates and economic uncertainties? If you want to master real estate, even in challenging times, our mastermind at TheWealthyAFai is designed for you. At thewealthyafai is designed for you, whether you're buying, selling or investing. I'll show you how to thrive in any market, or in this market and market just like it is today. Head on over to wealthyafai and let's get you started. Don't wait for the market to change. Learn how to win right now and remember that being broke was never the plan.

Speaker 1: 2:44

Let's get back to the show. Multifamily real estate is back and here's why you should care. Let's talk numbers, trends and why multifamily real estate is surging right now. Did you know that apartment sales in the US hit 11 billion in October? That's an 18% jump from last year. Billion in October that's an 18% jump from last year. Investors are feeling more confident about multifamily properties, and there's a good reason. Portfolio sales skyrocketed up by 159% year over year, showing just how much institutional investors are pouring into the sector.

Speaker 1: 3:22

Prices They've dipped 6.1% over the past year, but we're seeing signs of stability. Prices fell only 0.3% from September, signaling confidence in current valuations. Some cities are absolutely dominating. Boston saw its strongest sales volume since mid-2022 in. Washington DC is close behind, with $5.6 billion in deals this year. But here's the kicker Vacancy rates are down 5.3%, the lowest in two years, even with all the new constructions hitting the market. This suggests long-term rent growth potential and investors are taking notice.

Speaker 1: 4:03

This is an interesting piece of data that Redfin put out, because that is not my experience. In both of the markets. I'm working right, so I'm seeing. In the Pennsylvania market, I'm seeing vacancies actually go up, and vice versa, in the Tampa Florida market, I'm seeing the same thing Vacancies going up and it's taking longer to rent, so I am not seeing this. Remember, though, that real estate is very market to market dependent.

Speaker 1: 4:31

I really would like to hear what you guys are seeing in the market. What is your experience? Does this for those of you that buy, that have real estate and have rentals, I love to know does this actually match what you're seeing in the marketplace? Right Cause? A lot of times we're putting out, I'm putting out this data and I'm just one guy and um, and in a small circle of investors, I know and I'm constantly asking them, but I'd really like to get to know. Know what you guys are. What is your experience? Is this? What does this data match what you're seeing? Are you seeing? So here's my experience. I'm seeing I'm seeing rentals taking longer to rent. I'm seeing houses are selling pretty fast right now, but I'm seeing vacancies going up and rentals taking longer. I'd like to get your thoughts on that, if that's your experience in the market. If that's the case, just leave it in the comments. I'd love to hear what you think.

Speaker 1: 5:21

For the savvy investors, the multifamily sector is where the opportunity lies right now. Urban properties, garden style apartments, you name it. Multifamily is recovering and looking stronger than ever. So what's your move, guys? Will you get in while the market stabilizing, or will you miss out? Want to know more insights on where real estate is actually going? Hit that like and subscribe button. If you're ready to turn your goals into gold, then you're in the right place. Remember to stay focused, because being broke was never the plan. Let's be wealthy AF. That's a wrap in this week's weekly real estate market update.