Study (Principles 1) Real Estate Market Flash Cards

 
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(Principles 1) Real Estate Market

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When supply decreases and demand decreases, real estate prices
Remain stable
Real estate markets are usually identical in different sections of the same city T/F?
F
Population affects the
Demand for Real Estate
Government controls affect which of the following?
Supply of Real Estate
When demand increases, real estate prices
increase
Which is NOT insured by property insurance?
Land
Employment and wage levels affect the
Demand for Real Estate
The demand for real estate is affected by
Demographics
Which of the following stages of the business cycle is characterized by a general economic decline?
Recession
Because of the nonhomogeneity of real estate, which statement is TRUE?
No two parcels of land are exactly the same
Because real estate is immobile,
it's value heavily depends on the changes in the surrounding area
Nonhomogeneity and heterogeneity are synonymous terms T/F?
T
Government financial policy affects the
Supply of Real Estate
A family's wanting to buy a home near good schools is an example of which characteristic of real estate?
Area Preference
Relative scarcity is a physical characteristic of land T/F?
F
The term demographics does NOT include
Religious affiliation
A market is a place where goods can be bought and sold T/F?
T
In real estate markets, which may change quickly?
Demand
Which factor primarily affects supply in the real estate market?
Government financial policies
In reference to real estate, which means that investments are long term?
Permanence of Investment
Employment and wage levels affect the
Demand for Real Estate
Why is price of real estate slow to adjust?
All of the Above
The study and description of a population is demographics T/F?
T
The term demographics does NOT include
Number of people living in an area
When supply increases, real estate prices usually
Decrease
Which is the MOST important economic characteristic of real estate?
Area Preference
Government financial policies primarily affect the
Supply of Real Estate
Supply can be defined as the amount of goods consumers are willing and able to buy at a given price during a given time period T/F?
F
Demand for real estate is affected by which of the following?
Demographics
Immobility, indestructibility, and nonhomogeneity are economic characteristics of real estate T/F?
F
Real estate markets are local T/F?
T
Land can be depreciated T/F?
F
Real estate markets may be different in different sections of the same city T/F?
T
Community may use tax abatements to eliminate or reduce taxes to new companies T/F?
T
Relative scarcity, improvements, permanence of investment, and area preference are physical characteristics of real estate T/F?
F
Factors that tend to affect the demand side of real estate include population, demographics, and employment and wage levels T/F?
T
The business cycle can be characterized by four stages: expansion, recession, depression, and revival T/F?
T
When supply decreases, real estate prices increase T/F?
T
When supply increases and demand increases, real estate prices decrease T/F?
F
Changes in parcel of land that affect its value are called improvements T/F?
T
supply of real estate is affected by population T/F?
F
Zoning and building ordinances are established by the local government T/F?
T
Apartment building owner who landscapes property has increased its value through situs T/F?
F
Price of real estate is quick to adjust to sudden variations in supply and demand T/F?
F
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