Market Analysis
The study of supply and demand conditions affecting a property — price trends, inventory, absorption, marketing times, and buyer profiles. Market analysis grounds the appraisal's assumptions about direction and exposure time in data.
Related Terms
Supply and Demand
The economic principle that value is created and sustained by the interaction of available properties (supply) and ready buyers (demand).
Exposure Time
The estimated length of time a property would have been offered on the market before a hypothetical sale at the appraised value on the effective date.
Market Area
The geographic area within which properties compete for the same buyers.
Declining Market
A market in which property values are trending downward, evidenced by falling sale prices, rising inventory, longer marketing times, and increasing seller concessions.
More in Market Analysis
View allMarket Conditions
The current state of supply and demand in the real estate market for a particular property type in a defined area.
Absorption Rate
The rate at which available properties are sold or leased in a specific market during a given time period.
Days on Market (DOM)
DOMThe number of days between when a property is listed for sale and when it goes under contract.
Months of Supply
The estimated time it would take to sell all current listings at the current sales pace, calculated by dividing active inventory by the average monthly sales rate.