Real Estate Supply and Demand Definitions Quiz
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Questions and Answers

What is the term for the amount of a product or service that is currently available for sale, lease, or trade?

  • Price
  • Demand
  • Real Estate
  • Supply (correct)

    • What determines the price in real estate according to the text?

  • Oversupply
  • Increase in demand
  • Interaction between supply and demand (correct)
  • Cycle of supply and demand

    • What happens to prices when there is an increase in supply?

  • Prices remain constant
  • Prices tend to decrease (correct)
  • Prices tend to rise
  • Prices fluctuate randomly

    • What leads to the construction of additional supply according to the text?

    <p>Unfulfilled demand</p> Signup and view all the answers

    In real estate, what can result from more supply being added according to the text?

    <p>Oversupply</p> Signup and view all the answers

    What occurs when demand absorbs the existing supply according to the text?

    <p>Market equilibrium</p> Signup and view all the answers

    What initiates the cycle of supply and demand anew according to the text?

    <p>Unfulfilled demand</p> Signup and view all the answers

    What does an increase in vacancy rates signify in the real estate market?

    <p>A market that favors buyers/tenants and declining prices/rents</p> Signup and view all the answers

    How can merging adjacent properties impact their value?

    <p>Create a surplus value called plottage value</p> Signup and view all the answers

    What can splitting a single property into smaller units potentially lead to?

    <p>Increase in overall worth</p> Signup and view all the answers

    How do increases in building permits relate to the real estate market?

    <p>Indicate a decline in vacancy, along with increasing prices and construction</p> Signup and view all the answers

    What is one factor affecting the supply and demand of real estate?

    <p>Accessibility of developable land</p> Signup and view all the answers

    Why does the availability of labor force play a vital role in determining market dynamics?

    <p>It affects construction costs and project timelines</p> Signup and view all the answers

    How can shifts in the economic base affect the demand for real estate?

    <p>They can significantly change supply-demand balance</p> Signup and view all the answers

    What does a decrease in prices imply in the real estate market?

    <p>An increase in demand or decrease in supply, or both</p> Signup and view all the answers

    How do local oversight and approval of new development influence the real estate market?

    <p>They impact new developments in a locality</p> Signup and view all the answers

    What is the term for the amount of buyers and tenants who wish to acquire property for sale or lease in real estate?

    <p>Demand</p> Signup and view all the answers

    How are prices affected when there is an increase in supply in the real estate market?

    <p>Prices tend to decrease</p> Signup and view all the answers

    What initiates the construction of additional supply in the real estate market according to the text?

    <p>Increase in demand</p> Signup and view all the answers

    What can occur if there is an oversupply of properties in the real estate market?

    <p>Prices decrease</p> Signup and view all the answers

    In real estate, what is the term used for the measurement of the amount of property available for sale or lease?

    <p>Supply</p> Signup and view all the answers

    What happens when unfulfilled demand leads to construction of additional supply in the real estate market?

    <p>Oversupply can occur</p> Signup and view all the answers

    How is price determined in the real estate market according to the text?

    <p>By the interaction between supply and demand</p> Signup and view all the answers

    What occurs when demand absorbs the existing supply in the real estate market?

    <p>Prices rise</p> Signup and view all the answers

    How can merging adjacent properties impact their value?

    <p>Increase the value of individual properties</p> Signup and view all the answers

    What does a decrease in building permits indicate in the real estate market?

    <p>Decrease in demand for real estate</p> Signup and view all the answers

    Why is land availability a crucial factor influencing supply-demand equilibrium?

    <p>Limited land availability leads to higher prices and lower demand</p> Signup and view all the answers

    How does a decline in local oversight and approval of new development impact the real estate market?

    <p>Leads to unregulated development and potential market instability</p> Signup and view all the answers

    What initiates the cycle of supply and demand anew according to the text?

    <p>Changes in local industries or economies</p> Signup and view all the answers

    How do increases in interest rates impact the real estate market?

    <p>Decrease demand for real estate</p> Signup and view all the answers

    What signifies a market that favors buyers/tenants in terms of vacancy rates?

    <p>Increases in vacancy rates</p> Signup and view all the answers

    How does local zoning authority influence the real estate market?

    <p>By regulating land use and development</p> Signup and view all the answers

    What does an increase in prices imply in the real estate market?

    <p>Increase in demand or more supply</p> Signup and view all the answers

    How can the value of a property be impacted by the values of neighboring properties?

    <p>It increases due to the values of neighboring properties</p> Signup and view all the answers

    What does the surplus value generated by merging adjacent properties refer to?

    <p>Assemblage value</p> Signup and view all the answers

    Splitting a single property into smaller units can result in:

    <p>Increase in overall worth</p> Signup and view all the answers

    What does an increase in building permits typically indicate in the real estate market?

    <p>Increase in construction activity</p> Signup and view all the answers

    How do shifts in the economic base affect the demand for real estate?

    <p>Increase in demand</p> Signup and view all the answers

    What is the impact of a decrease in local oversight and approval of new development on the real estate market?

    <p>Decreased property prices</p> Signup and view all the answers

    Why is land availability considered a crucial factor influencing supply-demand equilibrium?

    <p>Land scarcity can drive prices up</p> Signup and view all the answers

    What do decreases in building permits usually indicate about the real estate market?

    <p>Decreasing construction activity</p> Signup and view all the answers

    How do changes in local zoning authority influence the real estate market?

    <p>They impact building restrictions and land usage</p> Signup and view all the answers

    What does an increase in demand typically lead to in the real estate market?

    <p>Rise in prices</p> Signup and view all the answers

    In the real estate market, what does oversupply of properties often result in?

    <p>Decrease in prices</p> Signup and view all the answers

    What signifies a market that favors sellers/landlords in real estate?

    <p>Low supply and high demand</p> Signup and view all the answers

    How can an increase in supply impact prices in the real estate market?

    <p>Decrease in prices</p> Signup and view all the answers

    What initiates the construction of additional supply in the real estate market according to the text?

    <p>Unmet demand</p> Signup and view all the answers

    How do increases in interest rates generally affect the real estate market?

    <p>Lower demand for properties</p> Signup and view all the answers

    What is the term used for the measurement of the amount of property that individuals desire to purchase or lease at any given moment?

    <p>Demand</p> Signup and view all the answers

    What happens to prices when there is an increase in demand in the real estate market?

    <p>Prices tend to rise</p> Signup and view all the answers

    In the real estate market, what typically results from an oversupply of properties?

    <p>Oversupply leads to an imbalance and potential price drops</p> Signup and view all the answers

    What signifies a market that favors sellers/landlords in real estate?

    <p>Increase in demand</p> Signup and view all the answers

    How do shifts in the economic base generally affect the demand for real estate?

    <p>Increase demand</p> Signup and view all the answers

    What initiates the cycle of supply and demand anew according to the text?

    <p>Unfulfilled demand leading to additional supply</p> Signup and view all the answers

    How can an increase in building permits impact the real estate market?

    <p>Lead to an oversupply of properties</p> Signup and view all the answers

    What does a decrease in local oversight and approval of new development typically signify for the real estate market?

    <p>Potential imbalance and decreased quality standards</p> Signup and view all the answers

    How does local zoning authority influence the real estate market?

    <p>Shapes land use and development regulations</p> Signup and view all the answers

    What can splitting a single property into smaller units potentially lead to?

    <p>Increase in overall property value</p> Signup and view all the answers

    How can local zoning authority influence the real estate market?

    <p>By affecting building permit issuance</p> Signup and view all the answers

    What does the surplus value generated by merging adjacent properties refer to?

    <p>Plottage value</p> Signup and view all the answers

    How do changes in local zoning authority influence the real estate market?

    <p>By impacting supply-demand equilibrium</p> Signup and view all the answers

    What is one factor affecting the supply and demand of real estate?

    <p>Governmental regulations</p> Signup and view all the answers

    Why is land availability considered a crucial factor influencing supply-demand equilibrium?

    <p>To define market dynamics</p> Signup and view all the answers

    In real estate, what is the term used for the measurement of the amount of property available for sale or lease?

    <p>Inventory</p> Signup and view all the answers

    What do decreases in building permits usually indicate about the real estate market?

    <p>Favorable market for buyers/tenants</p> Signup and view all the answers

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