Market trends, demographic analysis, economic indicators, and research methods for real estate markets.
Master market analysis & research with our progressive approach
Foundation terms you need to know first (51 terms)
A retail center is a commercial property designed for various retail businesses, ranging from small strip malls to large shopping centers, providing goods and services to consumers.
Price Per Square Foot (PPSF) is a real estate metric calculated by dividing a property's total price by its finished square footage, used to compare property values on a standardized basis.
An industrial warehouse is a large commercial building used for storing, manufacturing, or distributing goods and materials, serving as a critical link in the supply chain for various industries.
Market value in real estate is the most probable price a property should bring in a competitive and open market under all conditions requisite to a fair sale, with the buyer and seller acting prudently, knowledgeably, and typically uninfluenced by undue stimulus.
Walk Score is a numerical rating from 0 to 100 that measures the walkability of any address, indicating how easy it is to live car-free based on proximity to amenities.
Complex strategies and professional concepts (25 terms)
A market phenomenon where a declining real estate market appears to reverse and begin an upward trend, only to quickly resume its downward trajectory, trapping investors who bought into the false recovery. It often leads to significant losses for those who misinterpret the temporary rebound as a true market bottom.
The Case-Shiller Home Price Index is a leading measure of U.S. residential real estate values, tracking changes in home prices across 20 major metropolitan areas and nationally using a repeat-sales methodology.
Real estate financial modeling is the process of creating a quantitative representation of a real estate investment or development project to forecast its financial performance, assess risk, and support strategic decision-making.
Demand elasticity measures the responsiveness of the quantity demanded of a good or service to a change in its price or other influencing factors, crucial for real estate market analysis and investment strategy.
A value trap in real estate refers to an investment property that appears to be undervalued or a bargain but possesses underlying fundamental issues that will lead to further price depreciation or underperformance.
Fair Market Rent (FMR) is an estimate of what a rental property would lease for on the open market, including utilities, as determined annually by the U.S. Department of Housing and Urban Development (HUD) for various housing programs.
Fear of Missing Out (FOMO) in real estate investing is the anxiety that a profitable investment opportunity will be missed, leading to impulsive, emotionally-driven decisions rather than rational, data-backed analysis.
A comprehensive assessment of a proposed real estate project or investment to determine its viability, practicality, and potential for success across market, technical, financial, operational, and legal aspects.
The Federal Funds Rate is the target interest rate for overnight lending between commercial banks, influenced by the Federal Reserve to manage inflation and employment, and serving as a benchmark for other interest rates, including mortgages.
The Federal Open Market Committee (FOMC) is the monetary policy-making body of the U.S. Federal Reserve, responsible for setting interest rates and influencing the money supply to achieve maximum employment and price stability.
The Federal Reserve is the central banking system of the United States, responsible for conducting monetary policy, supervising banks, and maintaining financial stability, significantly impacting interest rates and the real estate market.
Filtering in real estate investing is the process of narrowing down a large pool of potential properties to a smaller, more manageable list that meets specific investment criteria.
Financial Statement Analysis (FSA) is the process of evaluating a business's financial health and performance by examining its financial statements, crucial for real estate investors to assess property viability, investor solvency, and project risk.
Fiscal policy refers to the government's use of spending and taxation to influence the economy, impacting factors like inflation, economic growth, and employment, which in turn affect real estate markets.
Food security is the reliable access to a sufficient quantity of affordable, nutritious food for all people at all times. For real estate investors, it signifies a critical socio-economic factor influencing property values, tenant stability, and investment opportunities in various sectors, from agricultural land to urban retail.
The for-sale market refers to the segment of the real estate industry where properties are actively listed and available for purchase by buyers, distinct from properties available for rent.
A foreclosure auction is a public sale where properties are sold to the highest bidder to satisfy a mortgage debt in default. These auctions offer opportunities for investors to acquire properties, often below market value, but come with significant risks and require extensive due diligence.
Explore complementary areas that build on market analysis & research concepts
Personal budgeting, expense tracking, cash flow management, emergency funds, and savings strategies.
Credit scores, debt consolidation, loan management, credit repair, and debt payoff strategies.
Macroeconomic concepts, interest rates, inflation, Federal Reserve policy, and economic cycles.
Wills, trusts, estate taxes, succession planning, beneficiary planning, and wealth preservation.