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.
An Automated Valuation Model (AVM) is a computer-generated real estate valuation based on mathematical modeling combined with a database of existing property and market information. It provides an estimated property value quickly and cost-effectively, often used for preliminary analysis.
A bear market is a period of sustained price declines in a financial market, typically characterized by a 20% or more drop from recent highs, coupled with widespread pessimism and negative investor sentiment.
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.
Benchmarking in real estate investing is the process of comparing a property's or portfolio's performance metrics against industry standards, similar properties, or a competitor's performance to identify areas for improvement and assess relative success. It helps investors understand how their assets stack up against the market.
Big Data in Real Estate refers to the collection and analysis of massive, diverse datasets—including market trends, demographics, and property records—to uncover patterns and insights that inform strategic investment decisions and optimize property management.
A boomtown is a city or region experiencing rapid economic and population growth, often driven by a specific industry or economic catalyst, leading to increased real estate demand and property values.
Bottom fishing is an advanced real estate investment strategy involving the acquisition of undervalued assets during market downturns, anticipating a future market recovery for significant capital appreciation.
Build-to-Rent (BTR) refers to residential communities, typically single-family homes or townhouses, that are purpose-built by developers specifically for rental rather than for sale, offering a professionally managed, amenity-rich living experience.
A bull trap is a false signal in a declining market where a brief recovery or breakout above a resistance level lures investors into buying, only for the market to reverse and continue its downward trend, trapping those who bought.
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.
A Buyer's List is a database of pre-qualified individuals or entities actively seeking to purchase investment properties, detailing their specific criteria and contact information, used to facilitate quick and efficient property dispositions.
A buyer's market is a real estate condition where the supply of available properties exceeds the demand from buyers, giving buyers more leverage in negotiations and leading to potentially lower prices and more favorable terms.
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