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Real Estate Market Flashcards

7 cards from real RAA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Real Estate Market flashcards as text

  1. The concept of 'linkage' in real estate refers to:

    Answer: The time-distance relationship between a property and supporting land uses

    Linkage describes the time-distance relationship between a property and the uses it depends on, such as employment centers or shopping.

  2. A real estate market cycle typically includes which four phases IN ORDER?

    Answer: Expansion, Peak, Contraction, Trough

    The standard real estate cycle progresses through Expansion (rising demand), Peak (highest activity), Contraction (declining activity), and Trough (lowest point).

  3. Supply in the real estate market is considered INELASTIC primarily because:

    Answer: Real property is immobile and production takes time

    Real estate supply is inelastic because construction takes considerable time and property is fixed in location, preventing rapid supply response to demand changes.

  4. Which economic base analysis concept states that local employment is divided into basic (export) and non-basic (service) sectors?

    Answer: Economic base theory

    Economic base theory divides local employment into basic industries that export goods/services and non-basic industries that serve the local population.

  5. An appraiser notes that a neighborhood has a high rate of homeownership and well-maintained properties. These are indicators of:

    Answer: Neighborhood stability

    High homeownership rates and well-maintained properties indicate owner pride and investment, which are signs of neighborhood stability.

  6. The multiplier effect in economic base analysis predicts that for every new basic sector job added:

    Answer: Multiple non-basic (service) jobs are created

    Each basic sector job that brings outside income creates additional non-basic service jobs to support the increased local spending.

  7. Which market condition would MOST likely lead to an increase in foreclosure activity?

    Answer: Negative equity positions combined with high unemployment

    Foreclosures increase when homeowners owe more than the property is worth (negative equity) and cannot make payments due to unemployment.