Which of the following would NOT typically be considered in supply analysis for a residential market?
Correct Answer
B) Average household income in the area
Household income primarily informs purchasing power and demand. Current listings describe available supply, while permits and planned developments describe potential pipeline supply that must be assessed for completion probability and timing. Income can indirectly influence development but is not itself an inventory count.
Why This Is the Correct Answer
Household income primarily informs purchasing power and demand. Current listings describe available supply, while permits and planned developments describe potential pipeline supply that must be assessed for completion probability and timing. Income can indirectly influence development but is not itself an inventory count.
More Market Questions
At one effective date, continued office use has a supported whole-property value of $2.8 million. On the same present-value and risk basis, retail redevelopment has a completed-value indication of $4.2 million and all conversion costs and required return allowances totaling $2.5 million. No other alternative produces more value. Which listed alternative has the higher net value?
Which isolated datum provides the least direct evidence of a geographic office competitive market when no buyer or tenant preference evidence is supplied?
Other relevant conditions equal, an increase in effective buyer demand relative to unchanged available listings tends to create which pressure?
Other conditions equal, which combination most directly creates upward competitive pressure on prices within the same defined market segment?
A market can support 40 additional comparable apartments over two years, while 80 units are expected to finish in that same period, with no offsetting removals. What does this suggest?
A purpose-built fire station has specialized apparatus bays and operational facilities with limited utility for alternative occupants. Which term best describes those specialized design characteristics?
For a site analyzed as though vacant, what does maximally productive mean?
Verified analysis for this waterfront market shows that direct waterfront access has the largest price effect among the listed differences. Which characteristic therefore requires the most attention in selecting and comparing these sales?
A special purpose property, such as a church, presents unique challenges in highest and best use analysis because:
Market analysis confirms that seller financing at 3%, versus a 6% market rate, increased a comparable sale price. What adjustment removes that financing premium?
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Previous Question
The average marketing time for similar properties in a neighborhood is 120 days. A property was listed 90 days ago at $400,000, reduced to $385,000 after 60 days, and is still on the market. This suggests:
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At one effective date, continued office use has a supported whole-property value of $2.8 million. On the same present-value and risk basis, retail redevelopment has a completed-value indication of $4.2 million and all conversion costs and required return allowances totaling $2.5 million. No other alternative produces more value. Which listed alternative has the higher net value?