65 Questions
What is the term for the amount of a product or service that is currently available for sale, lease, or trade?
Supply
What determines the price in real estate according to the text?
Interaction between supply and demand
What happens to prices when there is an increase in supply?
Prices tend to decrease
What leads to the construction of additional supply according to the text?
Unfulfilled demand
In real estate, what can result from more supply being added according to the text?
Oversupply
What occurs when demand absorbs the existing supply according to the text?
Market equilibrium
What initiates the cycle of supply and demand anew according to the text?
Unfulfilled demand
What does an increase in vacancy rates signify in the real estate market?
A market that favors buyers/tenants and declining prices/rents
How can merging adjacent properties impact their value?
Create a surplus value called plottage value
What can splitting a single property into smaller units potentially lead to?
Increase in overall worth
How do increases in building permits relate to the real estate market?
Indicate a decline in vacancy, along with increasing prices and construction
What is one factor affecting the supply and demand of real estate?
Accessibility of developable land
Why does the availability of labor force play a vital role in determining market dynamics?
It affects construction costs and project timelines
How can shifts in the economic base affect the demand for real estate?
They can significantly change supply-demand balance
What does a decrease in prices imply in the real estate market?
An increase in demand or decrease in supply, or both
How do local oversight and approval of new development influence the real estate market?
They impact new developments in a locality
What is the term for the amount of buyers and tenants who wish to acquire property for sale or lease in real estate?
Demand
How are prices affected when there is an increase in supply in the real estate market?
Prices tend to decrease
What initiates the construction of additional supply in the real estate market according to the text?
Increase in demand
What can occur if there is an oversupply of properties in the real estate market?
Prices decrease
In real estate, what is the term used for the measurement of the amount of property available for sale or lease?
Supply
What happens when unfulfilled demand leads to construction of additional supply in the real estate market?
Oversupply can occur
How is price determined in the real estate market according to the text?
By the interaction between supply and demand
What occurs when demand absorbs the existing supply in the real estate market?
Prices rise
How can merging adjacent properties impact their value?
Increase the value of individual properties
What does a decrease in building permits indicate in the real estate market?
Decrease in demand for real estate
Why is land availability a crucial factor influencing supply-demand equilibrium?
Limited land availability leads to higher prices and lower demand
How does a decline in local oversight and approval of new development impact the real estate market?
Leads to unregulated development and potential market instability
What initiates the cycle of supply and demand anew according to the text?
Changes in local industries or economies
How do increases in interest rates impact the real estate market?
Decrease demand for real estate
What signifies a market that favors buyers/tenants in terms of vacancy rates?
Increases in vacancy rates
How does local zoning authority influence the real estate market?
By regulating land use and development
What does an increase in prices imply in the real estate market?
Increase in demand or more supply
How can the value of a property be impacted by the values of neighboring properties?
It increases due to the values of neighboring properties
What does the surplus value generated by merging adjacent properties refer to?
Assemblage value
Splitting a single property into smaller units can result in:
Increase in overall worth
What does an increase in building permits typically indicate in the real estate market?
Increase in construction activity
How do shifts in the economic base affect the demand for real estate?
Increase in demand
What is the impact of a decrease in local oversight and approval of new development on the real estate market?
Decreased property prices
Why is land availability considered a crucial factor influencing supply-demand equilibrium?
Land scarcity can drive prices up
What do decreases in building permits usually indicate about the real estate market?
Decreasing construction activity
How do changes in local zoning authority influence the real estate market?
They impact building restrictions and land usage
What does an increase in demand typically lead to in the real estate market?
Rise in prices
In the real estate market, what does oversupply of properties often result in?
Decrease in prices
What signifies a market that favors sellers/landlords in real estate?
Low supply and high demand
How can an increase in supply impact prices in the real estate market?
Decrease in prices
What initiates the construction of additional supply in the real estate market according to the text?
Unmet demand
How do increases in interest rates generally affect the real estate market?
Lower demand for properties
What is the term used for the measurement of the amount of property that individuals desire to purchase or lease at any given moment?
Demand
What happens to prices when there is an increase in demand in the real estate market?
Prices tend to rise
In the real estate market, what typically results from an oversupply of properties?
Oversupply leads to an imbalance and potential price drops
What signifies a market that favors sellers/landlords in real estate?
Increase in demand
How do shifts in the economic base generally affect the demand for real estate?
Increase demand
What initiates the cycle of supply and demand anew according to the text?
Unfulfilled demand leading to additional supply
How can an increase in building permits impact the real estate market?
Lead to an oversupply of properties
What does a decrease in local oversight and approval of new development typically signify for the real estate market?
Potential imbalance and decreased quality standards
How does local zoning authority influence the real estate market?
Shapes land use and development regulations
What can splitting a single property into smaller units potentially lead to?
Increase in overall property value
How can local zoning authority influence the real estate market?
By affecting building permit issuance
What does the surplus value generated by merging adjacent properties refer to?
Plottage value
How do changes in local zoning authority influence the real estate market?
By impacting supply-demand equilibrium
What is one factor affecting the supply and demand of real estate?
Governmental regulations
Why is land availability considered a crucial factor influencing supply-demand equilibrium?
To define market dynamics
In real estate, what is the term used for the measurement of the amount of property available for sale or lease?
Inventory
What do decreases in building permits usually indicate about the real estate market?
Favorable market for buyers/tenants
Test your knowledge of real estate terms by matching the correct definitions to 'Supply', 'Demand', and other related terms.
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