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.
Investor sentiment refers to the overall attitude or feeling of investors toward a particular market or asset class, influencing their decisions to buy, sell, or hold investments.
An investor-friendly agent is a real estate professional who specializes in working with real estate investors, understanding their unique goals, and helping them find profitable investment properties. They possess specific knowledge of investment strategies, market analysis, and deal evaluation.
An investor-friendly market is a real estate environment characterized by conditions, regulations, and economic factors that favor real estate investors, offering strong potential for profitable acquisitions, robust rental demand, and favorable returns.
Irrational exuberance describes a period of unsustainable investor overconfidence and speculative buying that drives asset prices, such as real estate, far above their fundamental value, often leading to a market bubble and subsequent correction.
Job growth refers to the increase in employed individuals within a geographic area, serving as a key economic indicator for real estate investors to gauge market health, demand for properties, and potential for appreciation and rental income.
Job growth by metro refers to the rate at which new employment opportunities are created within a specific metropolitan area, serving as a critical indicator for real estate investors to assess market health and future property demand.
Job market analysis is the process of evaluating employment trends and economic health in a specific area to forecast its impact on real estate demand, property values, and rental income for investors.
Land appreciation refers to the increase in the market value of undeveloped or developed land over time, driven by factors such as economic growth, population shifts, infrastructure development, and changes in zoning regulations. It represents a key component of long-term real estate investment returns.
Land banking is the strategic practice of acquiring large tracts of undeveloped land and holding them for an extended period, anticipating future appreciation in value due to market growth or development potential.
Land due diligence is the comprehensive process of investigating a parcel of land to identify potential risks, liabilities, and opportunities before purchase or development, covering legal, environmental, physical, and financial aspects.
Lead generation in real estate investing is the systematic process of identifying and attracting individuals or entities likely to become clients or partners, primarily focusing on motivated sellers to secure off-market investment opportunities.
Leasing velocity measures the rate at which vacant real estate units or square footage are successfully leased or re-leased over a specific period, reflecting market demand and operational efficiency.
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