Chapter 19 - The Real Estate Market Flashcards Preview

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Flashcards in Chapter 19 - The Real Estate Market Deck (28):
1

What are the three basic questions that every economy in every land in the world has to deal with?

What will be produced?
Who will do the producing?
Who will get what is produced?

2

The ___________ actually decides what will be produced.

Consumer

3

The _______________ of a comparable-quality product will go on doing the producing.

Most efficient producer

4

Those people who ______________________ will get what is produced.

Have money and are willing to spend it in the marketplace

5

What are the five characteristics of the real estate marketplace?

1. Immobility of real estate
2. The market is slow to respond to change in supply and demand
3. Land is indestructible
4. Real estate is unique
5. Government controls influence the market through zoning, building codes, taxes, and so forth

6

What is supply?

The amount and type of real estate available for sale or rent at differing price levels in a given real estate market

7

What are the variables that influence supply?

Availability of skilled labor
Availability of construction loans and financing
Availability of land
Availability of materials

8

What is demand?

The desire and ability to purchase or rent goods and services

9

What are the variables that influence demand?

Price of real estate
Population numbers and household composition
Income of consumers
Availability of mortgage credit
Consumer taste or preferences

10

What is a household?

As defined by the Bureau of the Census, US Department of Commerce, is any person or group of persons occupying a separate housing space

11

What is a buyer's market?

An excess of supply

12

What is a seller's market?

An excess of demand

13

What are the market indicators?

Price levels
Vacancy rates
Sales volume

14

What are vacancy rates?

The percentage of rental units that are not occupied

15

Any economy in any nation must find answers for three questions: what will be produced, who will do the producing, and:

Who will get what is produced

16

The company who will do the producing is the:

Most efficient producer of a comparable-quality product

17

The ultimate decision makers in the marketplace are:

Consumers

18

What characteristic does not define the real estate market?

The market is quick to respond to changes in supply and demand

19

There is an ___________ relationship between price and demand.

Inverse

20

Government controls influence the real estate market both directly and indirectly. An example of an indirect control is:

Monetary policy

21

What statements are associated with the economic concept of demand?

Demand is the desire and ability to purchase or lease goods and services
Changes in price cause an inverse change in demand
Consumer preferences influence demand

22

Variables that influence demand include:

Consumer tastes and preferences
Population size and household composition
Consumer income

23

When the equilibrium of the real estate market is upset by an excess supply:

A buyer's market exists

24

One person or a group of persons occupying a separate housing space is technically defined as:

A household

25

The most important cause of population increase in Florida has been the:

In-migration of new residents

26

The barometer of the real estate market is considered to be the:

Cost and availability of credit

27

The typical homebuyer today is concerned primarily with the:

Amount of the monthly mortgage payment

28

Factors affecting the supply side of the real estate market are related to:

Availability of land
Availability of skilled labor
Availability of material