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Market Research & Analysis Flashcards

7 cards from real REA practice questions. Tap to flip, then mark Knew It or Still Learning โ€” missed cards come back until you master them.

Read the first 7 Market Research & Analysis flashcards as text
  1. Which metric best measures the pace at which available homes are selling in a given market?

    Answer: Absorption rate

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

  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:

    Answer: Strong seller's market with constrained inventory

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

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

    Answer: Estimate the market value of a subject property

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

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

    Answer: Segmented market analysis

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

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

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

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

  6. An analyst is comparing two office markets. Market A has a 5% vacancy rate and Market B has an 18% vacancy rate. Which conclusion is best supported?

    Answer: Market A has tighter supply conditions and likely stronger rent growth

    A low vacancy rate like 5% signals tight supply, giving landlords leverage and supporting rent growth, while 18% indicates excess supply.

  7. Which data source would be MOST useful for analyzing demographic trends affecting residential real estate demand in a specific census tract?

    Answer: U.S. Census Bureau American Community Survey

    The American Community Survey provides detailed demographic, social, economic, and housing data at the census tract level.