Economic Factors M1U2 Flashcards
1
Q
What is supply and demand?
A
- A broad market factor that applies to all products, goods and services.
- When supply exceeds demand, prices will fall
- When demand exceeds supply, prices will rise.
2
Q
What is a buyers Market?
A
When there is more houses than buyers
3
Q
What is a sellers market?
A
When there is more buyers than sellers
4
Q
What are some economic factors?
A
Business cycles
Real estate cycles
Inflation
Cost of money (interest rates)
5
Q
Economic base of real estate
A
The main business or industry a community uses to support its self.
Critical to maintaining home values.
Primary factor in determining the supply of real estate.
6
Q
Social factors that influence real estate
A
Demographics Population growth Population age Size of families Migrations of the population
7
Q
Physical factors that influence real estate markets
A
Immobility (can’t be moved)
Indestructibility ( can’t be destroyed)
Uniqueness ( can’t be duplicated)
Scarcity ( can’t be created)
