What is the difference between a Macro- and Micro-Market in Real Estate?
Simply stated, a Macro-Market can be as large as the entire U.S.! More commonly, when you ask a Real Estate Agent, "How's The Market?", you mean your city or county, your local area, or even your neighborhood.
But, be careful! Much of what you hear on the radio or see on the news pertaining to Real Estate is often concerning a Macro-Market. "U.S. Housing up 3.2%" or "In the Washington, D.C. area, home values are up 4.7%" or "Homes are selling quickly!". Because it reflects a Macro-Market, it may or may not actually apply to your situation.
So, what does any of this mean to you when you are Buying or Selling a Home?
Surprisingly, what you hear about the Macro-Market may mean very little or may even be contrary information to what's actually happening in your local "Micro-Market".
To be of value, only the data, statistics, and trends of your Micro-Market matter when Buying or Selling. Your Micro-Market is defined as the homes that are priced similarly to yours, within a 1 to 2 mile radius maximum, of similar size, function, features, etc., also referred to as "Comps". But it's more than just that.
As experienced agents in our local market, The Art of Real Estate Team knows that your true "Micro-Market" are the homes that a serious, qualified potential Buyer would look at and consider alongside of your home if it were on the market.
What this means is that there may be homes that are nearby yours (within a small radius) that would not carry the same market value due to additional factors, such as: Different School Districts which add or detract from value; Added features, updating, and upgrades; Homes in a cohesive neighborhood of like-kind properties versus a 'stand alone' group of homes; The presence or absence of Home Owner Associations, Tax Overlay Districts, and Amenities; and much more.
Or homes in your area might be selling well until you get above a certain price point, at which the sales activity slows and the marketing time ("Days On Market") increases.
Only an Experienced and Knowledgeable Agent can truly define, research, analyze, and advise you regarding your Micro-Market! We are here to help!
"We Sell Homes From A Fresh Perspective...YOURS!"