24 Questions
What does 'supply' refer to in the context of real estate?
The amount of property available for sale or lease
How does an increase in supply affect property prices?
Prices tend to decrease
What leads to the construction of additional supply according to the cycle of supply and demand?
Unfulfilled demand
Which factor can lead to construction ceasing until market equilibrium returns?
Oversupply
What happens when demand absorbs the existing supply in real estate?
Leads to unmet demand and starts the cycle anew
In real estate, what determines the price of a property?
The interaction between supply and demand
What factors can influence the supply and demand of real estate?
Accessibility of developable land, construction costs, and governmental regulations
What do increasing building permits indicate in the real estate market?
Decline in vacancy, rising prices, and increasing construction
What concept involves merging adjacent properties to create more value?
Plottage value
How can splitting a property into smaller units affect its overall worth?
It can potentially increase the overall worth
What do declining vacancy rates signify in the real estate market?
Market favorable for buyers/tenants, decreasing prices/rents, and local oversight
Which factor is crucial in determining market dynamics according to the text?
Availability of labor force
What happens to property prices when there is an increase in demand?
They tend to rise
What could be a consequence of oversupply in the real estate market?
Construction ceases
Which factor initiates the cycle of supply and demand in the real estate market?
Unmet demand
In real estate, what does 'demand' primarily refer to?
Amount of buyers and tenants who wish to acquire property
What impact does an increase in supply have on the real estate market?
Construction ceases
How are property prices in the real estate market determined?
By competition between buyers and sellers
What can a decrease in building permits indicate in the real estate market?
A decline in demand or an increase in supply
How do decreasing prices in real estate typically impact supply and demand?
Decreasing demand and increasing supply
What role does local oversight and approval of new developments play in the real estate market?
Controlling the pace of new construction
Which factor is crucial in determining plottage value according to the text?
Merging adjacent properties
What is a potential consequence of a local zoning authority's regulations on real estate development?
Limiting the types of development allowed
How does an increase in interest rates at the federal level likely influence the real estate market?
Impact financing costs and affordability
Test your understanding of the terms supply, demand, and price in the context of real estate. Learn about the measurement units for supply and demand in the real estate market.
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