Title: Explain the real estate market as it is affected by supply and demand.
Course: Real Estate (12154) > Section: Analyzing the Real Estate Market

Explanation should include

- factors that have an influence on listing and selling prices
- housing shortages, energy efficiency, interest rates, and economic conditions
- the influence of local conditions (e.g., zoning/planning)
- new vs. aging properties (cycle of a neighborhood)
- highest/best use of property
- effects related to building supplies (e.g., prices may rise after a natural disaster)
- availability of labor.

DPOR correlations: 18VAC135-20-400. 1 (Economy and social impact of real estate); 18VAC135-20-400. 2 (Real estate market and analysis)

Process/Skill Questions:

- What is supply and demand? How does the law of supply and demand affect the housing market?
- What are some factors that affect the sales price of a home?
- What are some factors that affect supply? What are some factors that affect demand?
- What are the four stages of the cycle of a neighborhood?
- How do factors such as the state of the economy, interest rates, real income, and changes in the size of the population affect the real estate market?
- How does housing supply relative to demand affect market price?