Unit One Summary Flashcards
(10 cards)
What economic forces influence the real estate market?
Interest rates and employment levels
These forces impact consumer confidence and investment decisions.
What must licensees do to be successful in the real estate market?
Follow economic trends and anticipate their direction
Understanding economic trends helps in making informed decisions.
What 4 factors contribute to consumer confidence?
- Perceived job security
- Availability of credit
- Impact of inflation
- Actions of the Federal Reserve Board
Consumer confidence affects how people use their income.
What general trends in the economy influence real estate investment decisions?
Availability of mortgage money and interest rates
These trends affect an individual’s willingness to invest in real estate.
What are some services provided by the real estate industry besides brokerage?
- Appraisal
- Property management
- Property development
- Counseling
- Property financing
- Education
Most firms specialize in one or two of these areas.
What types of real property can be classified in the real estate market?
- Residential
- Commercial
- Industrial
- Agricultural
- Special purpose
Licensees often specialize in specific types of real property.
Define a market in the context of real estate.
A place where goods and services can be bought and sold, and price levels established based on supply and demand
Real estate markets are unique and slow to adjust.
What 5 factors affect real estate supply and demand?
- Changes in population and demographics
- Wage and employment levels
- Construction costs
- Availability of labor
- Governmental monetary policy and controls
These factors influence pricing and market dynamics.
True or False: High demand leads to low prices in real estate.
False
High demand typically results in high prices.
Fill in the blank: A market is established based on _______ and _______.
supply and demand
This relationship is crucial for determining price levels.
