The CMA6 | Market Analysis sheet is a residential market analysis sheet for forecasting absorption. It is able to handle fundamental demand analysis based on market fundamentals like population growth or inferred demand analysis based on historical absorption in the market.
This guide shows how to access and use the CMA6 sheet in the Valuation Workbook.
Pre-Requisites
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Subscription Tier: Professional (with the Subdivision Add-on) or Enterprise
- This is not included in the base Professional subscription and requires an add-on service. If you would like to discuss accessing the Subdivision Workbook and Report Template, please contact your Client Success Manager or Support@valcre.com to assist.
- Subdivisions must be enabled by a Valcre administrator.
- Valcre Add-In version 2.0.8.0 or higher
- Valcre Workbook version 1.4.25 or higher
- A partially started (at minimum) Job in Valcre Online
- Set up the Valuation Workbook for Subdivision work.
Table of Contents
- How-to-Guide
How-to Guide
Step 1: Access the Market Analysis sheet by selecting CMA6 from the bottom navigation menu.
Fundamental Demand Analysis
Step 2: Review and adjust the information in the Fundamental Demand Analysis section
The data for this section is imported from the DEMO sheet when using a demographics importer.
- You can manually input the appropriate information in the starting population or households in L50 and L52 if you are not using a demographics importer such as STDB/ESRI.
- These fields can be overridden should the need arise.
- Market Area: This comes directly from the DEMO sheet in the valuation workbook.
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Households Source: Select the appropriate drop-down.
- The most common use of this field would be the Household Directly option, but you can use Population/Average Household Size when household information isn’t as available.
- Average Household Size: This is affected by the household source selection above.
- Households directly: - Not applicable
- Population/Average HH Size: - Inputs the average household size number
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Starting Year: We recommend using the year that applies to the year of the most current demographics.
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Population (or Household) Growth Rate: Auto-populates using the data in the DEMO sheet and depends on the Households Source selection above.
- Population/Average HH: This field shows the compound annual population growth rate implied by the indicated population growth rate on the DEMO sheet.
- Households Directly: This is the compound annual growth rate implied by the indicated growth rate shown on the DEMO sheet.
- You can override this and manually change the rate if you presume the household growth will be faster.
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Percent Owner Occupied: This is populated from the DEMO sheet.
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Frictional vacancy: This is auto-populated based on the data in the DEMO sheet and can be manually overridden if applicable.
- Annual demand Average: calculated off the Fundamental Annual Demand Analysis table starting at row 48.
Inferred Demand
This section is based on closed Sales.
Step 1: Enter your Search Basis criteria
Pro tip: Typically, if you are appraising a new subdivision, it would compete with other newly constructed homes, which is the default text. You can override this to enter different search criteria as necessary.
Closed Sales Section
Step 1: Enter Closed Sales info for last year based on MLS or Other sources using the appropriate columns.
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Other: Not all closed sales will be in MLS. This field allows you to enter that information here.
Step 2: Enter the Average Closed Sale Price
Step 3: Enter the relevant Average Sale Days on the Market (DOM)
- Both Average Closed Price and Average Sale Days on the Market (DOM) can be linked in the report based on relevant information to support that is competitive,
Demand Conclusion
Demand Weight: Select the demand type
Demand Comment: If you want additional context, you may add, delete, or re-write this section to provide further details to your demand weight selection.
Supply - Active Listings
Step 1: Enter Active Listings data for MLS and/or other data points.
Step 2: Enter the Average Active List Price for MLS and/or other data points.
Step 3: Enter the Average Active Listing Days on Market (DOM) for MLS and/or other data points.
Supply - Pending Sales
We understand that typically, Supply is considered active listings; this section is available to use if you are also considering Pending Sales.
Steps 1 - 3: Repeat the above steps.
Supply Conclusion
Step 1: Select the appropriate option for Pending Sales: Include in Demand, Include in Supply, or Exclude from Months of Supply.
Step 2: If applicable, review the Months of Supply.
- Note: If you selected Exclude from Months of Supply in the above option, this would be the Active Listings/Closed Sales to indicate Months of Supply.
Step 3: Select the appropriate option for Supply v. Demand
Step 4: Enter the Total Competitive Properties Including Subject
- If you believe the subject would get more than or less than its fair share of the absorption, you can override the Capture Rate.
Step 5: Review the Subject Absorption Projection rate
- This field depends on whether you choose to put the weight on Inferred Demand or Fundamental Demand.
- Inferred Demand: uses the Closed Sales Total.
- Fundamental Demand: uses the Annual Demand Average.
Fundamental Annual table
- When using the Population Divided by Average Household Size option, you will want to show rows 50 & 51. By default, these rows will be hidden
- When using the Households Directly option, Rows 50 & 51 are hidden by default because they are unnecessary when using Households directly.
Once you have completed the CMA6 | Market Analysis sheet, you can begin the LOTS sheet.
For additional questions about using the CMA6 | Market Analysis sheet, please contact Valcre Support using the live chat feature in Valcre Online or Valcre Mobile.