A real estate market is a group of individuals and entities that interact in the sale and purchase of property (including land, buildings, and fixtures). It includes buyers, sellers, investors, and lenders. Real estate markets are governed by laws and regulations that set standards for property ownership and transaction procedures. These standards help to protect the interests of all stakeholders involved in a real estate transaction.
Real estate markets are influenced by many local and global factors, including economic growth, demographic shifts, technological advancements, and government policies. Economic trends affect the demand for and supply of property, as do factors such as inflation rates, employment levels, and interest rates. Demographic trends can also impact property values by influencing the type of homes preferred in an area. For example, COVID-19-related changes to lifestyles may reshape residential preferences, leading to higher demand for properties in suburban areas with amenities and services (Colliers International, 2021).
A real estate market analysis is a study that evaluates property values by comparing a subject property to similar homes in the same location or neighborhood. It can be a valuable tool for both investors and homeowners to make informed decisions. It is important to verify property value estimates, as they may not be accurate. A comparison of comparable homes in the same neighborhood, such as size and features, can also be used to establish a property’s value. Lastly, a thorough review of the property should be performed to determine its condition and any repairs or upgrades that may need to be made.