Let's talk about market conditions.
The market conditions are a super hot topic right now due to new factors such as rising interest rates, global politics, inflation and talk of recession.
While all of these factors are important and certainly give context to what is happening in our market, it is important to understand that these factors are only part of the picture that we should be looking at.
Here's the reality
The real estate market and the opportunities that are embedded within it really should be evaluated through a two-part lens. The first part is the Macro Conditions. These are the factors like the above-mentioned political climate, interest rates, inflation, etc. These macro conditions are important because they define the landscape that frames the real estate market.
The second part is far more important Micro Conditions.
Because our Greater Seattle and Bellevue Real Estate Market has been heavily influenced over the last few years by low interest rates (Macro Condition), nearly every buyer, seller, and real estate professional have forgotten that it is the Micro Conditions that truly provide the greatest opportunities, both for homeowners and investors.
Unless you are an institutional buyer or hedge fund, the micro conditions that are hyper-local will tell you exactly what you should be doing in the market to take advantage of the current opportunities.
Keep in mind, that there are people in every market, at ANY given time, who are making money, creating cash flow, or building equity through real estate. Because of this, it is less important what the market is doing, and more important what you are doing in the market.
Let me ask you this
If the public school district approves a new plan to build a brand new elementary school in your area, with all of the best staff, amenities, and facilities, do you think this would be attractive to new families who might want to live in your area? YES, of course! If the zoning changed on your street to facilitate higher-density living, do you think that your lot would have additional value to a developer? YES, of course!
If the seller of a property were to offer you seller financing terms with half the interest rate that is available through your local bank, would this change the desirability of their property? YES, of course!All of these scenarios of micro conditions within your market. By truly understanding what current micro conditions are present and available to you as a participant in the market, you can Architect Your own opportunity!
Because of the shift in the macro conditions that have been driving our market for the last several years, now is the time to start thinking about and educating yourself on the arbitrage opportunities associated with the micro conditions in your area. If you are considering buying or selling a home, then be sure that you do not base your decision-making solely on macro information. I encourage you to explore the more nuanced opportunities that are embedded within your market.
Instead of asking, "How is the real estate market?", start asking, "What can I be doing in our current market to be successful?". The difference in answers between these two questions will greatly change the lens through which you view opportunities and will point you in the direction that will ultimately help you achieve your goals.
To learn more about the top opportunities in our market right now, reach out to us at The Weaver Byrne Group!
For more info on understanding Micro vs. Macro Conditions, be sure to check out our YouTube channel!