Market Analysis and Feasibility Flashcards
7 cards from real Real Estate Investing 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 and Feasibility flashcards as text
What does a 'buyer's market' in real estate indicate?
Answer: Supply exceeds demand, giving buyers more negotiating power
A buyer's market occurs when housing supply exceeds demand, giving buyers leverage to negotiate lower prices and better terms.
Which metric best measures rental market tightness in a given area?
Answer: Vacancy rate
Vacancy rate directly measures the percentage of rental units currently unoccupied, indicating how tight or loose the rental market is.
An investor analyzes a market and finds the months of supply is 2.5. What does this suggest?
Answer: It is a strong seller's market
Months of supply below 4-5 months typically indicates a seller's market with limited inventory and upward price pressure.
What is the primary purpose of a feasibility study in real estate development?
Answer: To determine if a project is financially and legally viable before committing capital
A feasibility study evaluates whether a proposed real estate project is financially, legally, and physically viable before significant capital is committed.
Which data source is most useful for identifying population growth trends in a target market?
Answer: U.S. Census Bureau data
The U.S. Census Bureau provides the most comprehensive and reliable data on population growth, demographics, and migration trends.
A real estate investor uses the 'price-to-rent ratio' to evaluate a market. A ratio of 25 indicates what?
Answer: Homes are relatively expensive compared to rents, favoring renters over buyers
A price-to-rent ratio of 25 means it takes 25 years of rent to equal the purchase price, suggesting renting may be more economical than buying in that market.
What does 'absorption rate' measure in real estate market analysis?
Answer: The speed at which available homes are sold in a specific market over a time period
Absorption rate measures how quickly homes sell in a market, calculated by dividing the number of homes sold by the total available inventory over a period.
How this page was made: written with AI tools and published by Nathan Beja, founder of Practice Test Geeks, who is responsible for its content. We have not yet matched this exam's facts to an official source, so confirm fees, dates and rules with the exam body. Not reviewed by a subject-matter expert. Editorial policy