RAA Real Estate Market 2

Question 1

In a buyer's market, which condition is most likely present?

Accepted Answer

High inventory with declining prices

Answer

A buyer's market is characterized by excess supply over demand, resulting in high inventory and downward pressure on prices.

Question 2

The absorption rate in a local market is calculated as the number of sales divided by:

Accepted Answer

Active listings

Answer

Absorption rate equals the number of sales per period divided by active listings, expressed as a percentage or months of supply.

Question 3

A market area experiencing rapid population growth and limited new construction would most likely show:

Accepted Answer

Rising property values

Answer

When demand (population growth) outpaces supply (limited construction), competitive pressure drives property values upward.

Question 4

Which type of market data is considered PRIMARY data for real estate market analysis?

Accepted Answer

Field interviews with buyers and sellers

Answer

Primary data is collected firsthand by the researcher directly from the source, such as interviews with market participants.

Question 5

A neighborhood transitioning from single-family residential to mixed commercial use is undergoing:

Accepted Answer

Transition

Answer

Transition refers to a neighborhood in the process of changing from one use type to another, affecting market dynamics.

(RAA) Certified Residential Accredited Appraiser Practice Test