Which of the following best describes market demand in real estate?

Market demand in real estate is best defined as the desire and ability of buyers to purchase property. This concept encompasses not only the willingness of buyers to acquire real estate but also their financial capacity to do so. In this context, demand reflects the intersection of consumer interest in property and their financial readiness to make a purchase.

Understanding market demand is crucial, as it directly influences property prices and market trends. When demand is high, prices tend to rise due to increased competition among buyers. Conversely, when demand is low, sellers may need to lower their prices to attract buyers.

The other options do not capture the essence of market demand. The number of properties available in a market relates more to supply than to demand, while rental rates and interest rates affect the market environment but do not define demand itself. Therefore, the correct choice emphasizes the dual factors of buyer interest and financial capability, illustrating what truly drives the real estate market.