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Market Analysis & Trends Flashcards

7 cards from real MRP 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

  1. Which metric best indicates whether a military housing market favors buyers or sellers?

    Answer: Months of inventory supply

    Months of inventory supply (under 3 = seller's market, over 6 = buyer's market) is the most comprehensive single indicator of market balance.

  2. When a military installation announces a significant troop reduction, what is the most likely immediate effect on the surrounding housing market?

    Answer: Increased rental vacancy rates and downward pressure on home prices

    Troop reductions reduce BAH-backed demand, increasing vacancy and softening prices as service members and their families relocate away.

  3. An MRP is comparing two military markets. Market A has a 60-day average DOM and Market B has a 12-day average DOM. Which conclusion is most accurate?

    Answer: Market B is more competitive and homes sell closer to or above list price

    A 12-day DOM signals high demand relative to supply, meaning buyers must act quickly and sellers often receive multiple offers at or above list price.

  4. How does the Department of Defense's Basic Allowance for Housing (BAH) rate-setting process influence local real estate markets?

    Answer: BAH rates are based on local median rents, creating a feedback loop that can push rents upward in military communities

    Because BAH is calculated from local rental surveys, high concentrations of BAH recipients can inflate rents, which then raises future BAH calculations.

  5. Which data source provides the most reliable, current snapshot of absorption rates in a military housing market?

    Answer: Local MLS closed sales data for the past 30-90 days

    Local MLS closed sales data gives real-time, market-specific absorption figures that reflect actual transaction pace rather than lagged national estimates.

  6. A military community near a large installation has seen a 15% year-over-year increase in home prices. Which factor unique to military markets could BEST explain this trend?

    Answer: An increase in BAH rates combined with a new construction moratorium on base housing

    Rising BAH gives military buyers more purchasing power while restricted base housing forces more service members into the civilian market, compressing supply and driving prices up.

  7. When conducting a Comparative Market Analysis for a military client, why is it especially important to filter comparables by date of sale?

    Answer: Military market conditions can shift rapidly with PCS season cycles and installation announcements

    Military markets experience sharp seasonal demand spikes (PCS season, spring/summer) and can be disrupted by sudden installation news, making recent comps far more representative than older ones.