Dividing a market into distinct buyer or tenant groups by need, price point, or location.
Related terms
- Months of supply
The number of months it would take to sell current inventory at the current sales pace; under about six months signals a seller's market, above signals a buyer…
- Mystery shopping
Posing as a prospective buyer or tenant to gather competitor pricing, incentives, and sales practices firsthand; often the only way to get real transaction ter…
- Net absorption
The change in occupied space over a period, accounting for both move-ins and move-outs.
- Price index
A number tracking the change in prices of a defined basket over time relative to a base period; residential price indices let you compare markets on a common s…
- Primary research
Original data gathered directly, e.g.
- Regression analysis
A statistical method estimating how one variable moves with others; used to isolate what drives price, such as size, location, and finish, and underpins hedoni…
- Sales-to-list ratio
The final sale price divided by the asking price, expressed as a percentage; below 100% shows buyers negotiating discounts, a useful gauge of pricing power.
- Sales velocity
The pace at which units in a scheme are sold, often expressed as units per month.