The housing market analysis is an important process through which one gathers information, which is useful for mortgagees, builders and other housing real estate owners or investors. This analysis is generally conducted by the Economic and Market Analysis Division of the Department of Housing and Urban Development. This provides facts and information about the current status of a given property, its future salability and the demographic, economic and housing inventory properties of specific housing markets. This also takes into account the population, number of existing household and the population within the area concerned. Moreover, a housing market analysis is essential for investments made in real estate.
Sample Housing Market Analysis
The following analysis has been made by the ZRB Analysts Co. for assessing the housing market potential of Colorado Springs, Colorado. The main objective is to allow investors and future investors know the limitations and potential of the area concerned. This analysis was submitted on 6.5.2012.
- Economy: The employment potential in Government sectors (local jobs) have increased from 0.3% to a whooping 4% from 2009 to 2012.
- Rental Market: The vacancies for rent have increased to 6.6%. Demand is expected for rental space for over 3000 rental units in the coming year.
- Sales Market: Due to increase in rental space, there is a satisfactory increase in sales potential to 2.3%.
- Demographic Survey: There has been a rise in population by 23% in the last 5 years. This has also led to an increase in the demands for better household conditions.
- House Marketing Trends: Rent will increase by 13.5% in the coming month.