Supplementary Lecture Real Estate Market Analysis 4 Market Analysis Defined –A study of real estate market conditions for a specific type of property

Supplementary Lecture Real Estate Market Analysis 4 Market Analysis –6 Steps in the Market Analysis Process Define the Product (property productivity analysis) Define the Users of the Product (Market Delineation) Forecast Demand Factors Inventory and Forecast Competitive Supply Analyze the Interaction of Supply and Demand Forecast Subject Capture

Supplementary Lecture Real Estate Market Analysis 4 Market vs. Marketability Studies –Market Study A macroeconomic analysis that examines the general market conditions of supply, demand, and pricing and the demographics of demand for a specific area or property type. –Marketability Study A microeconomic analysis that examines the marketability of a given property or class of properties, usually focusing on the market segment in which the property is likely to generate demand.

Supplementary Lecture Real Estate Market Analysis 4 Levels of Market Analysis –Inferred General and Descriptive Uses current and historical general market conditions –Fundamental Uses current and historical market conditions Uses fundamental analysis to forecast, subject specific supply, demand, absorption, and capture rates over a given holding period