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Market Analysis for Housing

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Market Analysis for Housing The Subdivision Wayne Foss, MBA, MAI Wayne Foss Appraisals, Inc. Email: wfoss_at_fossconsult.com The Economic Overview Essential to proper ... – PowerPoint PPT presentation

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Title: Market Analysis for Housing


1
Market Analysis for Housing
  • The Subdivision

Wayne Foss, MBA, MAI Wayne Foss Appraisals,
Inc. Email wfoss_at_fossconsult.com
2
The Economic Overview
  • Essential to proper analysis of highest and best
    use
  • Provides data that describes the local economy
  • must relate to economic and demographic trends
    that affect the use and value of properties in
    the same category

3
Six Step Analysis
  • Step 1 Property Productivity Analysis
  • Analyze Subject Attributes
  • Physical and Legal
  • Analyze Locational Attributes
  • Land Use Trends
  • Linkage and Land Use Patterns
  • Growth Trends (rate, type, direction)

4
Six Step Analysis
  • Step 2 Market Delineation
  • identify the geographic market study area
  • the area from which data used in the demand
    forecast will come
  • analyze consumer profile of most likely users of
    subject-type housing
  • housing attributes this type of purchaser
    (renter) desires.

5
Six Step Analysis
  • Step 3 Forecast Demand
  • Analyze current and forecast population
  • Calculate Population Change
  • Estimate Average household size
  • Estimate number of new households in the
    subjects market area for the projection period
  • Segment total new demand by housing type
  • Segment total new demand by ability to pay
  • Estimate total new demand for subject housing

6
Six Step Analysis
  • Step 4 Inventory and Forecast Competitive
    Supply
  • Inventory Existing Supply
  • Proposed and permitted supply
  • Potential Supply
  • Forecast new Competitive Subdivisions
    (apartments)

7
Six Step Analysis
  • Step 5 Interaction of Demand and Supply
  • Residual Demand Analysis
  • Subtract total existing supply from total new
    demand
  • Divide residual demand by annual, new demand to
    estimate period (time) required for existing
    supply to be absorbed
  • Step 6 Capture Analysis
  • Estimate subjects capture and absorption
    potential

8
An Example
Owner Occupied Housing
9
Step 1 Property Productivity Analysis
10
Market Delineation
11
Market Delineation
12
Market Delineation
13
Market Delineation
14
Forecast Demand
  • Analyze current and forecast population
  • Calculate Population Change
  • Estimate Average household size
  • Estimate number of new households in the
    subjects market area for the projection period

15
Forecast Demand, cont
  • Segment total new demand by housing type
  • Segment total new demand by ability to pay
  • Estimate total new demand for subject housing

16
Forecast Demand, cont
  • Segment total new demand by ability to pay

17
Inventory and Forecast Competitive Supply
  • Proposed and permitted supply
  • Potential Supply
  • Forecast new Competitive Subdivisions
    (apartments)

18
Interaction of Demand and Supply and Capture
Analysis
  • Residual Demand Analysis
  • Subtract total existing supply from total new
    demand
  • Divide residual demand by annual, new demand to
    estimate period (time) required for existing
    supply to be absorbed
  • Estimate subjects capture and absorption
    potential

19
(No Transcript)
20
So Thats - - - Market Analysis for Housing
Are there any Questions?
Wayne Foss, MBA, MAI, Fullerton, CA USA Email
waynefoss_at_usa.net
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