CE shop Unit 3 questions/TF
Supply is high and demand is low
Buyer's market
Consumers work with real estate professionals, lenders, home inspectors, etc., to purchase or sell a home.
Buying/selling
Engineers, contractors, and other workers build properties and infrastructure
Construction
Have a plan and stick to it
Downcycle do
Have projects ready to work on
Downcycle do
Set money aside to tide you over
Downcycle do
Break away from your sphere of influence and explore new territory.
Downcycle don't
Invest in high-end advertising to get your face out there
Downcycle don't
Public confidence is increasing and we're finally starting to see some properties moving. More buyers in the market mean a reduction in the high number of properties that have been sitting on the market.
Expansion
In which phase of the real estate market would you expect to see an increase in hiring and employment, increased public confidence and an increase in buyers in the market?
Explansion
Secondary mortgage market players purchase securities from investors, then package and resell them to local lenders. TF
False
Which of the following entities generally acts in the secondary market?
Fannie Mae
When does the real estate downcycle occur?
From mid November through the end of December
Which professionals are most utilized by the buyer prior to closing?
Lenders, title companies, appraisers and home inspectors
Residents enjoy local amenities and services.
Living
In the secondary market, how are mortgages grouped together and sold?
Mortgage-backed securities
Consumers make arrangements to occupy or leave the property.
Moving
The construction of what type of structures is one of the largest indicators on the country's economy
New homes
What can you expect to see during a downcycle?
No one is buying and no one is selling
As unemployment decreases, more and more buyers enter the market looking to purchase homes. The number of homes does not meet buyer demand, so new home construction increases to boost the supply. Multiple buyers may be after the same property, causing bidding wars, which drive up prices.
Over supply
We see the market begin to make a downturn during the ____ phase, when buyers are over-paying and activities are occurring at a rapid rate, which is not sustainable
Over supply
Several different phases make up the real estate cycle. What are they?
Over supply, Recession, Expansion and Recovery
During which phase of the real estate cycle is local government most directly involved?
Planning
Engineers, city and/or county officials map out local development
Planning
Which of these phases have an effect on the economy?
Planning, building, buying/selling, moving and living
During the _____ phase, the market begins to bottom out. We see home prices fall, while foreclosures increase
Recession
There are so many houses on the market, with many sitting vacant because everyone is too scared to buy. This does nothing to help the increasing number of foreclosures. Deals can be had for those who are ready to buy, however. During this phase, prices tend to fall in order to encourage home shoppers to buy.
Recession
In which phase of the real estate market would you expect to see unemployment and foreclosures remain high but begin to stabilize?
Recovery
Things in the real estate market are starting to improve. Foreclosures are still high, but not increasing. The same is true with unemployment. The public is still generally uneasy about the economy, but we've made it through the worst.
Recovery
During the ____ phase, things start to improve, and they continue improving until the end of the ____ phase, when the market peaks.
Recovery; Expansion
Supply is low and demand is high
Seller's Market
Both supply and demand are low
Stagnant market
When both supply and demand increase, what tends to happen to prices?
Stay the same
Local lenders may sell loans they have issued to national institutions as a way to generate more money to make additional loans. TF
True
Real estate activities have an impact on the economy. TF
True
Selling mortgage-backed securities provides national institutions in the secondary market with additional funds to continue purchasing loans from local lenders. TF
True
The health of the overall economy may rely heavily on construction of new properties. TF
True
The secondary market may act as a balancing mechanism by making money available in hot local markets and providing a safe avenue for cold local markets to unload excess funds. TF
True
Which of the following best describes the state of the market during the recession phase of the real estate cycle?
Unemployment increasing, prices falling and foreclosures on the rise
Buy into a few leads services to generate business
downcycle don't
When does a seller's market occur?
when supply is low and demand is high