Which of the following best describes "supply" in real estate?

The best description of "supply" in real estate is the volume of available properties for sale or rent. In real estate, supply refers specifically to the quantity of properties that are currently on the market and available for prospective buyers or tenants. It encompasses both residential and commercial properties that can be purchased or leased at any given time.

Understanding supply is crucial because it affects prices in the real estate market. When supply is high and demand is low, prices tend to decrease. Conversely, when supply is low and demand is high, prices usually rise. This principle is fundamental in real estate economics and helps to inform strategies for buyers, sellers, and investors alike.

The other options clarify different aspects of the real estate market but do not accurately define "supply." The total number of properties sold in a fiscal year pertains to transaction volume and market activity rather than available inventory. The number of potential buyers active in the market speaks to demand rather than the actual supply of properties. Lastly, the level of property appreciation over time relates to values and market performance, not the current inventory of available properties.