Chapter 9: The Real Estate Market Flashcards
Buyer’s market
The supply of available properties exceeds the demand
Demand
The quantity of goods or services wanted by consumers
Household
One individual, or a group of individuals, living in one dwelling unit
Seller’s market
The demand is greater than the supply of homes available
Situs
The economic quality of a parcel because of its location, uniqueness and immobility relative to other parcels for a given area
Supply
The product (properties) that is available at any given time
Vacancy Rate
The percentage of rental units unoccupied
The increase in value realized as a result of assemblage is known as:
Plottage
All of the following will affect the supply of real estate, except:
A Availability of skilled labor B Availability of materials C Change in consumer tastes or preferences D Amount of land available for construction
C Change in consumer tastes or preferences
Vacancy rate refers to:
The percentage of units vacant
All of the following are characteristics of real estate except:
A Adjacent properties may benefit from their
relationship to one another
B Real estate development is generally slow to
respond to changes in supply and demand
C Real estate is said to be heterogeneous
D A property's current zoning will never restrict
the overall potential of that site
A property’s current zoning will never restrict the overall potential of that site. (That is false)
The overall relationship between supply and demand will ultimately affect:
Price
Which of the following events will cause demand to decrease?
A Population increase B Price increase C Income increase D Lower interest rates
B Price increase
A property’s “highest and best use” refers to:
The type of construction that will result in the highest value for that property
Combining two or more parcels together to form one larger parcel is known as:
Assemblage
