What aspect defines the beginning of a market analysis?

The beginning of a market analysis is fundamentally rooted in the analysis of supply and demand for real estate assets. This step is crucial as it establishes a foundational understanding of how the market operates. By evaluating supply and demand, one can gauge the current and future viability of a real estate market, which informs all subsequent decisions and analyses.

Understanding supply refers to looking at how much property is available in the market, while demand investigates the interest level of potential buyers or tenants. This interplay directly affects pricing, market stability, and investment potential. In essence, recognizing the balance between supply and demand allows for a comprehensive initial assessment of the market's economic conditions, which is vital prior to delving into other aspects such as historical prices, demographics, or financing options.

These other elements, while important for a thorough market analysis, serve as supporting details that enhance or clarify the initial findings derived from the analysis of supply and demand.