What does supply indicate in the real estate market?

Supply in the real estate market refers to the amount of property available for sale at a given time. This concept encompasses all types of properties, including residential, commercial, and industrial real estate. Understanding supply is crucial because it helps to determine the market's balance or imbalance with respect to demand. When supply increases, it can lead to decreased prices if demand does not keep pace. Conversely, a lower supply with steady or increasing demand can drive prices up.

By grasping the concept of supply, investors and real estate professionals can better assess market conditions, make informed decisions about property investments, and strategize on pricing and marketing properties. In contrast, total demand for properties, market value, and the number of buyers are different aspects of market dynamics and do not specifically define what supply represents.