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.
A defensive play in real estate investing involves strategies focused on capital preservation and risk mitigation, particularly during uncertain economic conditions or market downturns, prioritizing stability over aggressive growth.
The delinquency rate is the percentage of loans or payments that are past due, indicating the financial health of a loan portfolio or the broader real estate market. It's a key metric for assessing credit risk and market stability.
Demand drivers are the underlying economic, demographic, and local factors that influence the need and desire for real estate, directly impacting property values, rental rates, and investment opportunities.
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.
Demographic analysis in real estate involves studying population characteristics like age, income, and household size to identify market trends, assess demand, and inform investment decisions.
A demographic shift refers to a significant change in the composition of a population over time, impacting factors like age, income, ethnicity, and household structure, which profoundly influences real estate demand and market dynamics.
Demographic trends refer to changes in population characteristics such as age, income, migration, and household size, which significantly influence real estate demand, property values, and investment opportunities.
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.
Derived demand in real estate refers to the demand for a property or space that arises not from the direct desire for the property itself, but from the demand for the goods or services produced within or facilitated by that property.
Development potential refers to a property's capacity to be improved, expanded, or redeveloped for a higher and better use, thereby increasing its value and utility for real estate investors.
Direct mail is a real estate investment marketing strategy involving sending physical mail pieces directly to property owners to generate leads, particularly for off-market deals and motivated sellers.
Direct negotiation in real estate involves buyers and sellers dealing directly with each other, bypassing agents to agree on terms, often for off-market or distressed properties.
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