Chapter 15 (The Real Estate Market and Analysis)

Question 1

A good balance between supply and demand for residential real estate is indicated when the vacancy rate is approximately __________________ .

Answer 1

5%

Question 2

The four factors of production include land, labor, capital, and __________________ __________________.

Answer 2

entrepreneurial ability

Question 3

The real estate market can best be described as being __________________ and __________________ .

Answer 3

inefficient,
unorganized

Question 4

An economic term used to identify value which results from the location of a parcel of land is __________________ .

Answer 4

situs

Question 5

If two or more parcels have a greater value as a single tract than the sum of their individual values as separate sites, their combination results in __________________ value.

Answer 5

plottage

Question 6

The use that creates the highest value to the land is its __________________ and __________________ use.

Answer 6

highest,
best

Question 7

The availability of materials, labor, financing, and land are all associated with the __________________ of real estate.

Answer 7

supply

Question 8

Population, credit, income, and consumer preferences are related to the __________________ for real estate.

Answer 8

demand

Question 9

The real estate market is __________________ to respond to changes in supply or demand.

Answer 9

slow

Question 10

Many visible “For Sale” signs and an increased number of rentals may indicate the neighborhood has entered a period of __________________ .

Answer 10

decline

Question 11

Immigration and emigration into and out of a neighborhood are an influence on value that can be categorized as a(n) __________________ force.

Answer 11

social

Question 12

The real estate business cycle has four phases with no beginning or end. When at its peak, the subsequent phases, in order, would be __________________, __________________ , and __________________ .

Answer 12

contraction,
trough,
expansion

Question 13

A __________________ market exists when there is an excess of demand over supply.

Answer 13

seller’s

Question 14

Price and demand are inversely related. This means that demand will typically decrease as prices __________________ and as prices, decrease demand will typically __________________ .

Answer 14

increase,
increase

Question 15

The social, economic, governmental, and environmental forces that affect real estate values are referred to as __________________ .

Answer 15

externalities

Question 16

Physically, real estate is characterized as being __________________ , __________________ , and __________________ .

Answer 16

indestructible,
immobile,
heterogeneous