In the context of property appraisal, what do supply factors relate to?

Supply factors in property appraisal are connected to the availability of properties and how that affects the real estate market. Specifically, these factors consider the total quantity of properties that are accessible for sale or rent in a given market at a particular time. This can include aspects such as the number of homes for sale, the rate of new construction, and existing inventory levels. When there is a higher availability of properties, it typically influences market prices and can lead to a decrease in property values if supply surpasses demand.

Understanding this, the focus on availability clarifies how supply dynamics operate within the real estate landscape. If there are more properties than buyers, prices may stabilize or decline. Conversely, limited availability can drive prices up, emphasizing the direct connection between supply factors and market conditions.