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.
Income stability refers to the consistency and predictability of rental revenue generated by an investment property, minimizing fluctuations and ensuring reliable cash flow for investors.
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.
The inflation rate measures the percentage increase in the general price level of goods and services over time, indicating the rate at which purchasing power declines.
Infrastructure refers to the fundamental facilities and systems, such as roads, utilities, and public services, that support a community and are crucial for real estate development and property value.
Infrastructure spending refers to government investment in public physical assets like transportation networks, utilities, and public facilities, which significantly influences real estate development, property values, and investment opportunities.
The interest rate environment describes the prevailing level and trend of interest rates in an economy, significantly influencing borrowing costs, investment returns, and the overall real estate market dynamics.
Interest rate hikes refer to an increase in the benchmark interest rate set by a central bank, typically the Federal Reserve in the U.S., which influences borrowing costs across the economy, including mortgages and investment loans.
Real estate inventory refers to the total number of properties currently available for sale in a specific market at a given time, serving as a key indicator of market supply.
The investment climate refers to the sum of economic, political, social, and regulatory factors that influence the attractiveness and risk of investing in a particular market or asset class.
Investment criteria are a set of predefined standards and metrics that real estate investors use to evaluate potential properties, ensuring alignment with their financial goals, risk tolerance, and investment strategy.
Investment decision making is the structured process of evaluating potential real estate acquisitions, assessing their financial viability and risks, and determining whether to proceed with an investment based on predefined objectives and market analysis.
An investment thesis is a detailed, data-driven argument explaining the fundamental reasons for a specific real estate investment, including market rationale, strategy, financial projections, and risk management.
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