Market Analysis & Trends Flashcards
7 cards from real CRM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Market Analysis & Trends flashcards as text
Which economic indicator is most directly used to forecast residential rental demand in a metropolitan area?
Answer: Employment growth rate
Employment growth drives population migration and household formation, directly increasing demand for residential rentals.
A residential market where vacancy rates are below 5% is typically classified as:
Answer: A landlord's market
Low vacancy rates (below 5%) indicate tight supply relative to demand, giving landlords pricing power — a landlord's market.
When performing a Comparative Market Analysis (CMA) for a residential property, which adjustment is made for a comparable sale that lacks a garage the subject property has?
Answer: Add the garage value to the comparable's sale price
In a CMA, adjustments are made to the comparable sale — adding value for features the comparable lacks that the subject has.
Which trend best describes the 'flight to quality' phenomenon observed in multifamily residential markets?
Answer: Institutional investors selling C-class assets to acquire A-class properties
Flight to quality refers to investors shifting capital from lower-grade assets to premium, higher-quality properties during market uncertainty.
A residential manager notices that concessions such as one month free rent are increasing in the market. This most likely signals:
Answer: Oversupply or softening demand in the rental market
Growing concessions indicate landlords competing for tenants, a sign of oversupply or weakening demand.
In residential market analysis, 'absorption rate' refers to:
Answer: The rate at which available units are leased over a given period
Absorption rate measures how quickly available rental units are leased, reflecting market demand strength.
Which demographic trend has most significantly increased demand for smaller, urban rental units in the U.S. over the past decade?
Answer: Millennials delaying homeownership and preferring urban living
Millennials' preference for urban amenities and delayed homeownership has driven sustained demand for smaller urban rental units.