Module 1 part 2 the real estate market Flashcards
costs
those expenses necessary to generate and deliver the item to the market
price
the amount of money or other asset that a buyer has agreed to pay and a seller has agreed to accept in exchange for a good or service. It is a quantification of the value of an item traded.
Supply
the amount of goods available in the market place to be sold at a given time for a given price. In real estate, supply is the amount of property for sale or lease at any given time.
Demand
the amount of goods people are willing and able to purchase at a given price. Real Estate demand is the amount of property buyers and tenants wish to acquire by purchase, lease, or trade at any time.
Value
The worth of an item as determined by its utility, desirability, scarcity, affordability, and other components and quantified as price
purchasing power
the consumer’s ability to pay
seller’s market
prices generally increase as supply decreases relative to demand
buyer’s marker
prices generally drop as supply increases relative to demand
market equilibrium
supply and demand are basically equal
demographics
the study and description of people in a community
Market
Specific place or economic system where goods are bought and sold. it is a transaction arena where price is constantly defining the value produced by the relative elements of supply and demand.
supply and demand
the economic forces that set prices for products.
characteristics affecting supply and demand
uniqueness, immobility, and affect of natural disasters or changes in financial markets or local events
factors affecting supply
labor force, development, construction, material costs, government controls at all levels (federal, state, and local), government financial policies such as changes in money or supply or inflation or national economic cycles
factors affecting demand
population, demographics, employment and wage levels, quality of life issues
