Property Investment Guide

Assessing Demand and Supply of Real Estate Markets


There are several relatively inexpensive ways of assessing supply and demand for real estate in a given area.


First, you can drive the streets of the neighborhood where your subject property is located. On reaching there, look for the number of for rent or for sale signs in the area. If you see a lot of these signs in the neighborhood, it is reasonable to assume that there could be too much supply relative to the present demand.


Real estate agents who have access to MLS market data can pull information for a given area. The agents can find out how many houses are on the market in that neighborhood, what the listing prices are and how many days the properties have been on the market. A high number of days on the market is a good indicator that either properties are overpriced or there is too much supply relative to the demand in the neighborhood. Start to invest in indian real estate here!


MLS data can also show the number of properties listed for sale relative to the total number of properties in the neighborhood. This can give you a very specific ratio of the amount of supply relative to the total number of properties in the neighborhood. Learn more about real estate at


If the number of properties for sale or rent exceeds 10% of the total number of properties in the neighborhood, proceed with caution. Apart from this, adjust your profit projections accordingly. In other words, leave yourself plenty of wiggle room.


Simply checking the classified ads in a given area can be an indicator of supply and demand issues. If you see ads that say things like "first month rent free", a builder advertising new properties with ads that say "free refrigerator or "builder pays closing costs", these could be signs of sagging demand or over supply.


It's not very hard to discover issues with supply and demand if you take the time to look at what is going on with sales or rentals in a given area. Know about investment options in india here!


A hot market, a.k.a. "a sellers' market, is a market in which demand significantly exceeds supply. A "buyer's market is one in which supply exceeds demand. Understanding this one key factor can be the difference between a big profit or a big mistake.


Also, at any given time, there will be both buyer's markets and seller's markets in various areas. There is no such thing as a blanket buyer's market or seller's market across the entire country.