REE 3043 Study Guide - Quiz Guide: Nuisance, Comprehensive Planning, Adverse Possession
Document Summary
Real estate values are determined by interactions in 3 different markets/ sectors: user (space markets, capital markets, gov"t sectors. Called the space market or rental market. Seperate local markets for various property types, retail office, industrial, etc. Individuals, households and firms who require space either for consumption or production purposes. Real estate owners/ operators who rent space to tenants. Both demand and supply side of user markets are very specific to location/ building type. Because of segmentation retail prices for physically similar houses can vary widely across locations and property types. Re competes for funds in the capital market with other asset classes (such as stocks and bonds) Investors select a mix of investments based on expected returns and risk. Risk free rates of various maturities (treasury yield) Absense of centralized market (or even price lists) Common for the whole assets to be traded in a single transaction (indivisibility) Property market is integrated but not segmented like space market.
