Understanding Micro Markets in Real Estate

It is important to understand that there are many micro markets in real estate. When someone says that home prices are down 10% are they talking about homes across the US, within the state, in the city of Bellingham, or in your neighborhood? While real estate is affected at a broad level, it is also highly sensitive to the neighborhood.

It is not necessarily a bad time to sell your home. It really depends on your micro market. Let’s look at Bellingham as an example. There are currently 512 homes on the market within the city. Over the last 6 months the average days on market for homes in Bellingham that have sold is 105 days. Based on these figures you might think that your home in Bellingham will take 4 months to sell, but that is not necessarily the case. Let’s look a couple of niche markets within the Bellingham real estate market.

Cornwall Park is a pretty established and popular neighborhood. Most of the homes were built in the 1920’s. The average price pint in the Cornwall Park Neighborhood is under $300k and lower than the average in Bellingham. This makes the Cornwall Park Neighborhood an ideal location for first time home buyers. Over the last 6 months the average days on the market for the neighborhood was only 39 days. If you currently own a home in the Cornwall Park Neighborhood and wanted to upgrade to a larger, now is a perfect time. Where would be a good place to buy a home in Bellingham right now?

The Barkley Neighborhood might be a good place to target. Most of the homes in the Barkley Neighborhood are priced over $300k. On average, the homes in the Barkley Neighborhood are larger and newer than homes in the Cornwall Park Neighborhood. Over the last 6 months the average days on the market for the Barkley Neighborhood was 134 days. While it looks like it might not be a good time to sell a house in Barkley, it does look like a good time to buy one.

It is important to know your mirco market when making decisions about buying and selling your house. Don’t rely on national media or your local newspaper to sway decision to buy or sell. You should be contacting a real estate professional that knows your micro market. Original Article

Ryan Martin, Windermere Real Estate/Whatcom, Inc.

Your Bellingham Real Estate Professional

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