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 (25 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.
Appreciation in real estate is the increase in a property's market value over time, leading to a profit for the owner when sold or refinanced. It is driven by market forces, economic growth, and property improvements.
A "Buy Box" is a set of specific criteria that real estate investors use to define the types of properties they are looking to acquire, helping them quickly identify suitable investment opportunities.
Consumer spending refers to the total money spent by households on goods and services, serving as a crucial indicator of economic health and directly influencing real estate markets.
A core market in real estate is a highly desirable, stable, and established geographic area known for consistent demand, strong property values, and low investment risk, driven by robust economies and high quality of life.
Days on Market (DOM) measures the number of days a property listing remains active on the Multiple Listing Service (MLS) before going under contract. It indicates how quickly properties are selling in a specific area.
Demographics are statistical data about a population, such as age, income, and household size, used by real estate investors to understand market demand and make informed investment decisions.
Domestic demand refers to the total spending on all goods and services produced within a country, significantly influencing real estate markets through factors like housing needs, rental rates, and property values.
Domestic migration refers to the movement of people from one region or state to another within the same country, significantly impacting local real estate markets through shifts in population and housing demand.
Driving for Dollars is a real estate investment strategy where investors drive through neighborhoods to find distressed, neglected, or vacant properties that are not yet on the market, aiming to identify motivated sellers for off-market deals.
Drones in real estate are unmanned aerial vehicles (UAVs) used to capture aerial photos, videos, and data for property marketing, inspections, and land surveys, offering unique perspectives and detailed insights.
Existing homes are properties that have been previously owned and occupied, distinguishing them from newly constructed properties. They represent the vast majority of real estate transactions and offer unique investment opportunities.
Filtering in real estate investing is the process of narrowing down a large pool of potential properties to a smaller, more manageable list that meets specific investment criteria.
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