In real estate, the term 'supply' refers to what?

In real estate, the term 'supply' primarily refers to the amount of properties available for sale in the market. This reflects how many homes, commercial units, or land parcels are currently on the market for potential buyers. Understanding supply is crucial for assessing market conditions, as it can influence property prices, buyer competition, and overall inventory levels. An increase in supply may indicate a buyer's market, where prices tend to stabilize or decrease, while low supply may indicate a seller's market, leading to higher prices and competition among buyers.

The other options discuss related concepts but do not encapsulate the definition of 'supply' as it pertains to real estate. The price range set by sellers pertains to pricing strategies rather than available inventory. The financial capacity of buyers focuses on buyers’ purchasing power, which affects demand but not supply. Regulatory restrictions address factors that can influence supply indirectly but do not define what supply itself is.