Supplementary Lecture Real Estate Market Analysis

1
Supplementary LectureReal Estate Market Analysis

• Market Analysis Defined
• A study of real estate market conditions for a
  specific type of property

2
Supplementary LectureReal Estate Market Analysis

• 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

3
Supplementary LectureReal Estate Market Analysis

• 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.

4
Supplementary LectureReal Estate Market Analysis

• 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