Chapter 15: Real Estate Market Economics Flashcards
Price is best described as…
The amount of money a buyer and seller agree to exchange to complete a transaction
Four principal determinants of value underlying the price for a product are…
Desire, utility, scarcity, and purchasing power
A town has a rapidly growing population, but there are no longer any vacant lots around the lake to build more houses. In this case, it is likely that the price of existing homes on the lake…
Will increase
If there is a significant under-supply of homes in a market, construction will tend to increase. This is an example of…
The market tending toward equilibrium
If commercial real estate rental prices are falling in a market, it is likely that…
The market is oversupplied
Which of the following is an important economic characteristic of real estate?
The demand must literally come to the supply
The foremost factor contributing to commercial and residential demand in a market is…
Base employment
A construction boom in a market is an indication that prices…
Have been increasing
A local government could stimulate the real estate market by…
Expanding the sewer system
Two important concerns of retail property users are…
Trade area population and spending patterns
Two important concerns of office property users are…
Costs of occupancy and building efficiency
