Unit 1: Overview Of Real Estate Flashcards
Fixture
if an item cannot be removed from the property without causing damage to the property.
Economics
field of study that analyzes how individuals, business, and governments make choices on allocating limited resources such as land, labour, and capital in order to satisfy apparently unlimited wants
Macroeconomics
economy-wide phenomena, such as inflation and unemployment affect society
Microeconomics
study individuals, households, and firms make decisions to allocate scarce or limited resources, where goods and services are being bought and sold
Econoic Growth
long-term expansion of the productive potential of any economy and it’s often meausred as the percentage change in the gross domestic product (GDP), adjusted for the inflation from one year over an earlier period.
GDP (Gross Domestic Product)
measures progress or the rate of expansion of the economys capacity to produce output
Causes Of Economic Growth
Natural Resources
Capital
Rate Of Savings
Technological Progress
Benefits Of Economic Growth
- improves standard of living
- stimulates employment
- increases government revenue
- increases capital investment
- enhances business confidence
Real Estate and It’s Effects On The Economy
- housing starts
- real estate sales
- vacancy rates and occupancy rates
- building permits issued
Housing Starts
number of privately owned new houses on which construction has been started in a given period
Real Estate Sales
number of real estate sales within a given period is another closely watched indicator affecting a market - driven economy
Vacancy Rates And Occupancy Rates
measure the number of available units not occupied against the total number of units available in a building or the amount of rentable space compared to the total space
Building Permits Issued
a written document issued by the municipal government granting permission for the construction of a new property or alteration, demolition, renovation, or recolation of an existing property
Factors Of Production
- land
- labour
- capital
- entrepreneurship
Supply
amount of a certain good or service the market can offer given a certain price
Supply Line Shift
occur when a change in quantity supplied is caused by only a change of price
Shifts
occur when there are changes in an influencing facotr other than the price
Factors In Shift Changes
a change in
- costs of production
- state of technology
- producers expectations
- number of suppliers in the market
- government taxes subsidies
Demand
the quantity of a good or service that would be bought at a certain price over a period of time.
Shifts In Demand
occur when there is a change in an influencing factor other than the price of the good or service
Factors Of Shifts In Demand
a change in
- consumer expectations
- number of consumers
- consumers disposable income or wealth
- cosumers tastes and preferences
- substitute or complement products
Market Equilibrium
used to refer to a state of balance between supply and demand forces
Market Surplus
a state of dis equilibrium where by the quantity supplied exceeds the quantity demanded at the current price
Market Shortage
a state of disequilibrium whereby the quantity demanded exceeds the quantity supplied at the current price