CCS Market Analysis & Trends 2

Question 1

Which metric best measures the rate at which available condominium units are being leased or sold in a given market over a specific period?

Accepted Answer

Absorption rate

Answer

Absorption rate measures how quickly available units are sold or leased in a market within a defined timeframe.

Question 2

A condominium market where the number of active listings significantly exceeds buyer demand is best described as:

Accepted Answer

A buyer's market

Answer

A buyer's market occurs when supply exceeds demand, giving buyers more negotiating leverage and typically causing prices to stabilize or decline.

Question 3

When conducting a comparable sales analysis for a condominium, which factor is LEAST likely to be used as a primary adjustment variable?

Accepted Answer

Color of interior paint

Answer

Interior paint color is a cosmetic, easily changeable feature that has minimal measurable market impact compared to structural or financial attributes.

Question 4

A rise in the months of supply for condominiums from 3 to 8 months most likely indicates:

Accepted Answer

A shift toward a buyer's market

Answer

Months of supply above 6 typically signals a buyer's market, as it would take longer to sell all existing inventory at the current sales pace.

Question 5

In condominium market analysis, 'shadow inventory' refers to:

Accepted Answer

Distressed or foreclosed units not yet formally listed for sale

Answer

Shadow inventory includes bank-owned, seriously delinquent, or foreclosed units that will eventually enter the market but are not yet actively listed.

(CCS) Certified Condominium Specialist Practice Test

(CCS) Certified Condominium Specialist Practice Test

CCS Market Analysis & Trends 2