2 Real Estate Markets Free Online FlashCards

What is a real estate market?

A real estate market is the buyers, sellers, landlords, tenants, and investors making property decisions in a particular place and time.

What does real estate demand measure?

Demand is the amount of property buyers or tenants are willing and able to acquire at different prices or rents.

What do permits, housing starts, and completions help track?

Permits, housing starts, and completions track different stages of new housing supply.

How can mortgage-rate changes affect homebuyers?

When mortgage rates rise, some buyers reduce their budgets or delay purchases; when rates fall, purchasing power may increase.

Name several local forces that shape real estate markets.

Local factors include population and job growth, zoning, infrastructure, transportation, schools, amenities, property taxes, and hazard exposure.

How does a sale price differ from an asking price?

A sale price is the amount agreed for a property transaction; it is not the same as the asking price.

Why might median sale prices change without showing pure price movement?

An average or median sale price can change because the mix of properties sold has changed, not only because property values moved.

Why is a high asking rent alone an incomplete market signal?

A high asking rent alone does not show whether units are leasing quickly or sitting vacant.

What distinguishes a seller’s market from a buyer’s market?

A seller’s market has strong demand relative to available listings; a buyer’s market gives buyers more options and bargaining power.

Which indicators can help assess a real estate market?

Useful indicators include listings, days on market, sale prices, rent changes, vacancy rates, permits, starts, completions, and inventory.

How should you use indicators to assess a local market?

Assess prices, rents, vacancies, and time on market together, using comparable property types and locations rather than relying on one statistic.

Why is real estate supply often relatively fixed in the short run?

In the short run, supply is often relatively fixed because construction takes time and suitable land may be scarce.