analysis should research competitive subdivisions, current building activity, and the resale market in the selected geographic area.
Regarding competitive subdivisions complete an inventory analysis on
housing projects to determine:
How many housing units are there, (include new subdivisions since they will be building out during you process period)? What kind of housing units are available? How much the units are selling for on the current market?
To further assess your market, complete a more comprehensive competitive inventory that focuses on the supply of the particular product type you plan to put on the market. Visit competitive projects to gather the following specific information:
Number of units
Mix of units
Price/lease rates (include rental rates and square footage)
Future plans and schedule
Current Building Activity
Part of knowing the market’s housing supply is staying abreast of the current building activities in the area. You can gather information through the local planning, building permit, and real estate board offices. The following five things are useful measures of current building activity.
The number of building permits issued
Unsold or “spec” inventory
Regarding the resale market, your market analysis should provide information on the existing homes currently available for sale. You’ll need to determine: