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.
A motivated seller is a property owner who needs to sell quickly due to urgent circumstances, often prioritizing speed and convenience over achieving the highest possible market price.
The Multiple Listing Service (MLS) is a cooperative database used by real estate brokers and agents to list properties for sale and access comprehensive property information, facilitating real estate transactions.
Multiple offers describe a real estate scenario where a property receives purchase proposals from more than one prospective buyer, often simultaneously, indicating high demand and competition.
Natural disaster risk assessment is the process of identifying, evaluating, and quantifying potential financial and physical impacts of natural hazards on real estate investments, crucial for informed decision-making and risk mitigation.
Negative equity occurs when the outstanding balance of a loan secured by a property exceeds the property's current market value, often referred to as being "underwater" or "upside down."
New Housing Starts refers to the number of new residential construction projects on which ground has been broken during a given period, serving as a key economic indicator for the health of the housing market and broader economy.
The occupancy rate is a key real estate metric representing the percentage of a property's available units or space that is currently leased or occupied by tenants, indicating demand and income stability.
An off-market property is real estate available for sale but not publicly listed on a Multiple Listing Service (MLS), often sold through private channels or direct outreach.
An offer strategy is a comprehensive plan developed by a real estate buyer to present a purchase offer, encompassing price, contingencies, and terms tailored to market conditions and seller motivations.
Opportunistic investing in real estate involves targeting high-risk, high-reward properties or strategies that capitalize on market dislocations, distressed assets, or complex situations to generate outsized returns.
Out-of-state investing involves purchasing and managing investment properties in a different state from your primary residence, often to access better market opportunities or higher returns.
Overbuilding occurs when the supply of new real estate units in a market significantly exceeds the current and projected demand, leading to increased vacancies, downward pressure on rents and property values, and reduced investment returns.
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