Understanding the Intricate Real Estate Markets
We often hear about seller's markets and buyer's markets, especially with the way things are currently. But what's fascinating is the concept of markets within markets. The overarching real estate market may lean towards a seller's market, but within that, there are smaller markets that dance to a different tune. Today, we're going to explore these micro-markets, which are often overlooked but hold their own unique dynamics.
Let's start by examining two ends of the spectrum. On one side, we have condos priced under $150,000. Currently, there are eight available for sale, with two pending sales, and four have been sold in the last 30 days. This data helps us calculate the "months on market" figure. Assuming those two pending sales go through, we'll have had six sales and eight available units, resulting in just 1.3 months of inventory. In other words, it would take 1.3 months to sell all existing inventory if no new listings came onto the market. These condos are attractive to first-time homebuyers, and investors are eyeing them too, thanks to the favorable price point and the robust rental market.
On the flip side, we have the million-dollar market within the city limits of Red Deer. At present, there are seven million-dollar-plus homes on the market, and one has sold in the last 30 days. This translates to a seven-month inventory. So, if we sold one of these high-end homes every month, it would take seven months to clear the current inventory.
It's quite a contrast, isn't it? Two ends of the real estate spectrum, both coexisting in the same overarching market. These are the fascinating nuances that make the real estate world so intriguing.