RAA Real Estate Market 4

Question 1

A neighborhood where younger, wealthier residents are moving in and renovating older homes, displacing lower-income residents, is experiencing:

Accepted Answer

Gentrification

Answer

Gentrification involves higher-income residents moving into lower-income neighborhoods, improving housing stock but often displacing existing residents.

Question 2

In real estate market analysis, the term 'months of supply' is calculated as:

Accepted Answer

Active listings divided by monthly sales rate

Answer

Months of supply equals active listings divided by the average monthly sales rate, indicating how long it would take to sell all current inventory.

Question 3

The 'filtering' process in housing markets refers to:

Accepted Answer

Older housing moving down the quality/price spectrum over time

Answer

Filtering describes how housing units move down the quality and price spectrum as they age, eventually becoming affordable to lower-income households.

Question 4

An appraiser studying long-term real estate market trends would find which data source MOST useful?

Accepted Answer

FHFA House Price Index spanning multiple decades

Answer

Long-term trend analysis requires multi-decade data sources such as the FHFA House Price Index, which tracks price changes over extended periods.

Question 5

Which principle explains why property values in a neighborhood tend to be influenced by surrounding properties?

Accepted Answer

Principle of conformity

Answer

The principle of conformity states that maximum value is achieved when properties are similar in size, style, and use to neighboring properties.

(RAA) Certified Residential Accredited Appraiser Practice Test

(RAA) Certified Residential Accredited Appraiser Practice Test

RAA Real Estate Market 4