Analysis as in Housing Market Analysis means probing into the parts comprising the entire Housing Market and also the relations among those in making up the whole. This can be done through Comparative Market Analysis which involves an informal judgment of a house's market value,calculated by comparing the house to other similar houses sold off in the locality during the previous year. This is usually carried out to offer a reasonable sales price when it is put up for sale.
The Housing Market Analysis is usually estimated by agents having thorough knowledge of Housing Market behavior of a particular area.
The Housing Market Analysis takes into account alterations in the following features of a specific Housing Market area :
- Economic
- Demographic
- Housing stock.
The reports of Housing Market Analysis deliver calculations and estimates of :
- employment
- population
- households
- housing stock.
The aim of Housing Market Analysis is to specify the fundamental conditions and trends that influence the demand for housing in a particular residential area in a given time period.
The Housing Market Analysis is further divided into the following:
- The Demographic Analysis which describes a population, including the composition of the population, that is whether -
- the area is expanding or reducing,
- the area is becoming diverse that is containing people from different origins, classes, castes and color
- the population is growing younger or older
- the population is becoming economically stronger or weaker
- the size of houses are increasing or decreasing
- The Housing Market Analysis which identifies the composition of the housing stock in terms of -
- the characteristics of the residing unit (that is, the house)
- information regarding the inhabitation of the owner and renter
- elements influencing the supply and demand of the Local Housing Market
The following terms related with housing are crucial in Housing Market Analysis :
- Standard Condition Housing - a house either in its first building state or in its present condition, that meets the demands of primary structural conditions and living situations
- Substandard Condition Housing can be categorized into the following:
- Substandard Condition Housing not Suitable for Rehabilitation - damaged, dilapidated or deteriorated
- Substandard Condition Housing Suitable for Rehabilitation - requires renovation for inhabitation and is not damaged, dilapidated or deteriorated.
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