Kansas City, MO · Member since 2017 · 2 posts · 0 votes
I have been reading about the rental market shifting to "Secondary Markets" such as Atlanta, Phoenix, Las Vegas. What makes a market a "Secondary Market"? Just trying to understand the terminology being used so I'm not off base with my investing strategies....
@Johnny Hiatt Even the good folks at CBRE talk about it being "clear as mud". That said, the article at least information how they compute Tier I, II, and III markets. That said, I'm sure you could have a rousing debate as to if Portland (as an example) is a Tier II or a Tier III market.
I think there are some major cities that would be mentioned first, if you asked people in other countries about American cities: New York, Los Angeles, Chicago, Miami, San Francisco.....I think all others would be talked about later.
Don't know if that's how that designation came about - just my thoughts
@Johnny Hiatt Even the good folks at CBRE talk about it being "clear as mud". That said, the article at least information how they compute Tier I, II, and III markets. That said, I'm sure you could have a rousing debate as to if Portland (as an example) is a Tier II or a Tier III market.
Secondary Market is not, primarily, a ge-location, but an alternative buyer/seller.
1. Customers other than those to whom a product was originally offered. For example, tools designed and priced for professionals may also be bought by serious hobbyists. 2. Financial market where previously issued securities (such bonds, notes, shares) and financial instruments (such as bills of exchange and certificates of deposit) are bought and sold. All commodity and stock exchanges, and over-the-counter markets, serve as secondary markets which (by providing an avenue for resale) help in reducing the risk of investment and in maintaining liquidity in the financial system. 3. Alternative term for aftermarket.
For example, a new SFR construction is primarily intended for a conventional purchase buy a HOME OWNER intending to OO. The secondary market would be the BP Investor :giggle: intending to B&H as a rental.
Derrick Aragon
That was the same impression I had. In Arizona the primary market is Phoenix metro. Secondary markets include Tucson, Yuma, Flagstaff, Sierra Vista, etc.
That was the same impression I had. In Arizona the primary market is Phoenix metro. Secondary markets include Tucson, Yuma, Flagstaff, Sierra Vista, etc.
A product, such as a specific property, has an intended audience/buyer. It has a specific location, but can have multiple types of buyers - - the owner occupant or the secondary rental investor. As that specific property can't get up and walk to the next county, the secondary market is not location related.
Notice:
One perspective is from the view of a specific property, particularly in selling.
The other is the REI person providing a service to multiple markets, aka a mortgage broker.
Like many discussions, it's all Perspective. Perspective deserves an understanding in most situations.
I have buyers that think non-gated areas of any area in Phoenix are secondary and others that think the remote suburbs are secondary while still others would look at the far reaching areas of the state as secondary. Of course, others, as mentioned above, translate this to even larger metro area discussions. I have 4 -Plex owners that have lower scale properties that have their perspective.
Don't even start a discussion with anyone from Tucson as to if they are secondary to Phoenix. That's akin to criticizing your mother-in-law's cooking at Thanksgiving.
Put the discussion in perspective so the audience understands what you are attempting to define.
Large percentage of newly originated mortgages are sold by their originators into the secondary market, where they are packaged into mortgage backed securities and sold to investors such as pension funds, insurance companies and hedge funds. The secondary mortgage market helps to make credit equally available to all borrowers across geographical locations.
@Anthony Gayden LOL, I have been very involved with Realtor Politics over the last 2 decades and trust me Tucson does not like to be framed as the little brother or secondary market in any way.
Phoenix makes up 75% of the Real Estate Market in the state but hey let's not let numbers get in the way of our feelings. lol (Omaha/ Council Bluffs) I'm from Storm Lake, IA