Chapter 9: The Real Estate Market Flashcards
(16 cards)
Buyer’s market
The supply of available properties exceeds the demand
Demand
The quantity of goods or services wanted by consumers
Household
One individual, or a group of individuals, living in one dwelling unit
Seller’s market
The demand is greater than the supply of homes available
Situs
The economic quality of a parcel because of its location, uniqueness and immobility relative to other parcels for a given area
Supply
The product (properties) that is available at any given time
Vacancy Rate
The percentage of rental units unoccupied
The increase in value realized as a result of assemblage is known as:
Plottage
All of the following will affect the supply of real estate, except:
A Availability of skilled labor B Availability of materials C Change in consumer tastes or preferences D Amount of land available for construction
C Change in consumer tastes or preferences
Vacancy rate refers to:
The percentage of units vacant
All of the following are characteristics of real estate except:
A Adjacent properties may benefit from their
relationship to one another
B Real estate development is generally slow to
respond to changes in supply and demand
C Real estate is said to be heterogeneous
D A property's current zoning will never restrict
the overall potential of that site
A property’s current zoning will never restrict the overall potential of that site. (That is false)
The overall relationship between supply and demand will ultimately affect:
Price
Which of the following events will cause demand to decrease?
A Population increase B Price increase C Income increase D Lower interest rates
B Price increase
A property’s “highest and best use” refers to:
The type of construction that will result in the highest value for that property
Combining two or more parcels together to form one larger parcel is known as:
Assemblage
Generally, when there are more buyers than current homes available for sale, prices will:
Increase
