Ch 16 Flashcards
Real property market is defined as:
“Buyers and sellers of particular real estate and the transactions that occur among them.”
Market area analysis (also referred to as x analysis) is defined as:
neighborhood
“The objective analysis of observable and/or quantifiable data indicating discernible patterns of urban growth, structure, and change that may detract from or enhance property values; focuses on four sets of considerations that influence value: social, economic, governmental, and environmental factors.”
“Study of the economy as an aggregate system, focusing on national/domestic production, national/domestic income, the supply of money, the rate of inflation, the national budget, the balance of trade, and the interrelationships among constituent sectors. “ defines
Macroeconomics
“The study of the economics of individual spheres of activity or patterns and behaviors, e.g., a firm, an industry, a retail market, a consumer segment, pricing, local employment, individual property performance. “
Microeconomics
“A division of a total market that reflects the preferences of a particular set of buyers and sellers.” is defined as
A submarket
Submarkets can consists of:
(long list)
- Single-unit
- Two- to four-unit
- Multi-unit
- Old houses
- New houses
- Starter homes under $100,000
- Mid-range homes between $100,000 and $300,000
- Luxury homes in excess of $300,000
- Condominiums
- Apartments
- Townhouses
- Suburban houses
- Rural houses
“The process by which submarkets within a larger market are identified and analyzed.” defines
Market segmentation
“The differentiation of a subject property from other properties on the basis of subclassifications with differing product characteristics. “
Disaggregation
In supply analysis we may research and investigate:
- Existing stock
- Volume of new construction
- Planned construction - new building permits
- Availability and price of vacant land
- Costs of construction
- Properties offered for sale
- Conversions in progress
- Availability of financing
What represents the maximum supply of any kind of real estate at any given moment?
Existing housing stock
“An analysis of the general market conditions of supply, demand, and pricing for a specific property type in a specific area. “ defines
Market study
“Broadly, the rate at which vacant space in a property or group of properties for sale or leasehas been or is expected to be successfully sold or leased over a specified period of time.” defines
Absorption rate
“The actual or expected period required from the time a property, group of properties, or commodity is initially offered for lease, purchase, or use by its eventual users until all portions have been sold or stabilized occupancy has been achieved.” defines
Absorption Period
“A study of how a specific property is expected to perform in a specific market. A marketability analysis expands on a market analysis by addressing a specific property. “ defines
Marketability Analysis
A marketability analysis differs from a market analysis in that it
addresses a specific property.
