REA Market Research & Analysis 2

Question 1

Which metric best measures the pace at which available homes are selling in a given market?

Accepted Answer

Absorption rate

Answer

Absorption rate measures how quickly available housing inventory is sold or leased within a specific time period.

Question 2

A real estate analyst notices that a neighborhood's median home price increased 15% while the number of transactions fell 30%. This most likely indicates:

Accepted Answer

Strong seller's market with constrained inventory

Answer

Rising prices alongside falling transaction volume typically signals limited supply giving sellers pricing power despite fewer deals closing.

Question 3

In real estate market research, a 'comp' or comparable sale is primarily used to:

Accepted Answer

Estimate the market value of a subject property

Answer

Comparable sales (comps) are recently sold similar properties used as benchmarks to estimate the market value of a subject property.

Question 4

Which type of market analysis focuses specifically on supply and demand for a particular property type within a defined geographic area?

Accepted Answer

Segmented market analysis

Answer

Segmented market analysis narrows focus to a specific property type and submarket to assess localized supply and demand dynamics.

Question 5

When analyzing retail real estate, 'trade area delineation' refers to:

Accepted Answer

Defining the geographic zone from which a retail site draws its customers

Answer

Trade area delineation identifies the geographic boundary from which a retail location realistically captures the majority of its customer base.

(REA) Real Estate Analyst Certification Practice Test

(REA) Real Estate Analyst Certification Practice Test

REA Market Research & Analysis 2