What is "market analysis" in real estate?

Market analysis in real estate is fundamentally concerned with evaluating the value of a property in relation to similar properties that have recently been sold, along with the current state of the market. This involves a thorough examination of comparable sales, often referred to as "comps," which helps in determining a property's fair market value. By taking into account various factors such as location, size, amenities, and condition of the property, alongside prevailing market conditions—like supply and demand—real estate professionals can provide a realistic and informed valuation.

This process is crucial for sellers to set a competitive asking price and for buyers to make informed offers. While marketing strategies, tax calculations, and future trend predictions are relevant to real estate, they do not encapsulate the core function of market analysis, which is strictly focused on assessing value based on current and past market data.