Market Area
The geographic area within which properties compete for the same buyers. A market area can be larger than a neighborhood — buyers comparing several towns define a broader competitive area than a single subdivision.
Related Terms
Neighborhood Analysis
The appraiser's evaluation of the area surrounding the subject property, including property values, market trends, land use, demographics, and external factors that influence value.
Comparable Sale
A recently sold property that is similar to the subject property in terms of location, size, condition, and features, used as evidence to support the appraiser's opinion of value in the sales comparison approach..
Market Analysis
The study of supply and demand conditions affecting a property — price trends, inventory, absorption, marketing times, and buyer profiles.
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.