Chapter 9 Flashcards
A set of arrangements in which buyers and sellers are brought together through the price mechanism; the aggregate of possible buyers and sellers and the transactions between them.
Market
In economic theory, the principle that states that the price of a commodity, good, or service varies directly, but not necessarily proportionately, with ____1___, and inversely, but not necessarily proportionately, with ____2___.
- Supply
2. Demand
a gathering of people for the buying and selling of things
Market
Buyers and sellers of particular real property and the transactions that occur among them
Real property Market
A market characterized by numerous transactions.
Active Market
A market in which buyers have the advantage; exists when market prices are relatively low due to an oversupply of property or reduced buyer demand.
Buyer’s Market
An active market in which the sellers of available properties can obtain higher prices than those obtainable in the immediately preceding period; a market in which a few available properties are demanded at prevailing prices by many users and potential users.
Seller’s Market
A market in which a drop in demand is accompanied by a relative oversupply and a decline in prices.
Depressed Market
According to the principle of supply and demand, the price of a commodity varies ___________ with supply.
proportionately
independently
inversely
none of the above
Inversely
“A set of arrangements in which buyers and sellers are brought together through the price mechanism; the aggregate of possible buyers and sellers and the transactions between them” is the definition of
exchange rate
marketing plan
exchange
market
Market
The principle of supply and demand states that the price of a commodity varies ________ with demand.
proportionately
directly
independently
none of the above
Directly
a mechanism for bringing together buyers and sellers. It may or may not be in a particular physical location
A market
Buyers and sellers of particular real estate and the transactions that occur among them.
Real Estate Market
The problem with the real estate market is
Demand high, supply can be low or slow to change
The real estate market is
perfect
imperfect
stable
unstable
imperfect
A group of complementary land uses; a congruous grouping of inhabitants, buildings, or business enterprises.
Neighborhood
A neighborhood characterized by homogeneous land use, e.g., apartment, commercial, industrial, agricultural.
District
The area associated with a subject property that contains its direct competition.
Market Area
Some national trends have contributed to the decline of values in a particular area
the Great Depression
emigration to the South and West
post World War II construction
Long-term cycles
Two factors are typically responsible for ________: the level of interest rates, and the amount of credit available.
availability of mortgages
Short-Term cycles
The principle of supply and demand states that the price of a commodity varies ________ with demand.
Directly
Because real estate is immobile, it is
Sensitive to nearby influences
What is the supply of real estate in a market?
The existing stock of parcels of real estate
A real estate market is defined in terms of
Market Boundaries
When supply and demand are out of balance, they tend to move towards
Equilibrium
True or False? Real property is typically purchased with cash.
False
“The area associated with a subject property that contains its direct competition” is the definition of
Market Area
Which of these is NOT a characteristic of an efficient market?
homogeneous product
stable prices
immobility of product
large number of buyers and sellers
Immobility of a product
“A market in which product differentiation exists, there is a lack of important product or market information, and some of the producers and/or consumers are significant enough to affect the price and quantity of goods by their actions alone” is the definition of a(n) ____________ market.
perfect
distressed
imperfect
buyer’s
Imperfect
“A neighborhood characterized by homogeneous land use, e.g., apartment, commercial, industrial, agricultural” is the definition of
neighborhood
district
market
central business district
District
“An active market in which the sellers of available properties can obtain higher prices than those obtainable in the immediately preceding period; a market in which a few available properties are demanded at prevailing prices by many users and potential users” is the definition of a(n) __________ market.
buyer’s
seller’s
declining
depressed
Seller’s
All of the following would be participants in the real property market EXCEPT
real estate agents
attorneys
developers
economists
Economists
“A market characterized by numerous transactions.” is the definition of a(n) _________ market.
buyer’s
seller’s
active
depressed
active
Real property is unique as an economic good in that it is
immovable
impossible to finance
stably priced
homogeneous
immovable
A real estate market is defined in terms of __________.
physical factors
supply
external factors
competition
competition
A problem with the real property market is that the amount of _______ is slow to change.
supply
demand
supply and demand
new customers
supply
