Market trends, demographic analysis, economic indicators, and research methods for real estate markets.
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Foundation terms you need to know first (51 terms)
A retail center is a commercial property designed for various retail businesses, ranging from small strip malls to large shopping centers, providing goods and services to consumers.
Price Per Square Foot (PPSF) is a real estate metric calculated by dividing a property's total price by its finished square footage, used to compare property values on a standardized basis.
An industrial warehouse is a large commercial building used for storing, manufacturing, or distributing goods and materials, serving as a critical link in the supply chain for various industries.
Market value in real estate is the most probable price a property should bring in a competitive and open market under all conditions requisite to a fair sale, with the buyer and seller acting prudently, knowledgeably, and typically uninfluenced by undue stimulus.
Walk Score is a numerical rating from 0 to 100 that measures the walkability of any address, indicating how easy it is to live car-free based on proximity to amenities.
Complex strategies and professional concepts (27 terms)
A market phenomenon where a declining real estate market appears to reverse and begin an upward trend, only to quickly resume its downward trajectory, trapping investors who bought into the false recovery. It often leads to significant losses for those who misinterpret the temporary rebound as a true market bottom.
The Case-Shiller Home Price Index is a leading measure of U.S. residential real estate values, tracking changes in home prices across 20 major metropolitan areas and nationally using a repeat-sales methodology.
Real estate financial modeling is the process of creating a quantitative representation of a real estate investment or development project to forecast its financial performance, assess risk, and support strategic decision-making.
Demand elasticity measures the responsiveness of the quantity demanded of a good or service to a change in its price or other influencing factors, crucial for real estate market analysis and investment strategy.
A value trap in real estate refers to an investment property that appears to be undervalued or a bargain but possesses underlying fundamental issues that will lead to further price depreciation or underperformance.
Herd mentality in real estate refers to the tendency of investors to follow the actions of a larger group, often ignoring their own analysis or fundamental market indicators, leading to market bubbles or crashes.
Highest and Best Use refers to the reasonably probable and legal use of a property that is physically possible, financially feasible, and results in the highest value, guiding optimal property utilization and investment decisions.
Historical price levels refer to the past selling prices or values of real estate properties over a period, providing insights into market trends and potential future performance.
Home price appreciation refers to the increase in a property's market value over a period, driven by various economic, demographic, and local market factors, leading to capital gains for investors.
The Housing Affordability Crisis refers to a market condition where a significant portion of the population struggles to afford adequate housing due to high home prices, rising rents, and stagnant wages relative to housing costs. It impacts both homeowners and renters, creating barriers to entry for new buyers and financial strain for existing residents.
Housing demand refers to the total number of homes that potential buyers or renters are willing and able to purchase or lease at various price points within a specific market and time frame. It's a key indicator of market health.
A housing market crash is a severe and rapid decline in real estate property values across a broad market, often triggered by economic downturns, excessive speculation, or unsustainable lending practices, leading to widespread financial distress.
Housing market risk refers to the potential for adverse changes in the value, demand, or liquidity of real estate assets, impacting investors' returns and capital. It encompasses various factors, from economic downturns to localized market shifts, that can undermine investment performance.
Housing market trends refer to the general direction in which the real estate market is moving, influenced by factors like supply, demand, interest rates, and economic conditions. Understanding these trends is crucial for making informed investment decisions.
Housing supply refers to the total number of homes available for sale or rent in a specific market at a given time, indicating the availability of properties for buyers and renters.
Housing supply and demand refers to the fundamental economic principle that explains how the availability of homes (supply) and the desire for homes (demand) interact to determine housing prices and market conditions.
A flexible work arrangement where employees split their time between working remotely (e.g., from home) and working in a physical office location. This model significantly impacts commercial real estate needs and residential property demand.
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