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Reca Real Estate Questions And Answers 100% Correct Latest Updated 2024
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Reca Real Estate Questions And Answers 100% Correct Latest Updated 2024
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Reca Real Estate Questions AndAnswers 100% Correct Latest Updated
2024
Buyers' Market - ANSWER✔✔ When inventory of properties in a market exceeds
the # of buyers competing for that inventory; Prices are lover due to excess supply
and properties remain on market for loner
Gross Domestic Product - ANSWER✔✔ reflects the health of production in a
country; represents the monetary value of all finished goods and services
produced w/in a country in a given period
GDP=Consumer spending+Investment spending+Gov't spending+(exports-
imports)
Capacity Utilization Rate - ANSWER✔✔ metric to determine the rate at which
potential outputs levels of goods and services are being met/used; In percentage,
shows how close firms are to reaching max capacity by using available factors of
production.
Consumer Price Index (CPI) - ANSWER✔✔ change in consumer prices experienced
by Canadians; obtained by comparing a fixed basket of goods and services
purchased by families and individuals living in urban and rural private households
over time; measures consumer prices inflation or deflation
Indexation - ANSWER✔✔ adjusting employees' wage rates in proportion to %
change in CPI
GDP fluctuations causes - ANSWER✔✔ -seasonal flux
,-business cycles
-secular trends: eg. Baby booming
Suppliers' Market - ANSWER✔✔ -When market demand for properties is higher
than available supply; property price increase; properties sell quickly
Balanced Market - ANSWER✔✔ Where demand for property equals the supply of
available property. Sellers usually accept reasonable offers and houses generally
sell in sufficient time periods. Prices remain stable and there is usually a good
number of homes to choose from.
Characteristics of RE - ANSWER✔✔ -Local in Nature
-Slow to Respond
-Not Standardized: not all properties on on the database (eg. new homes and
private sales by owner
-Private Transactions: all ownership ad sales data of a property only available
online through documents registered at Alberta's Land Titles Offices
Physical Characteristics of Real Estate - ANSWER✔✔ -RE is unique: there's no
standard product; land is homogeneous
-RE is fixed
-RE is durable
Supply and Demand influential factors in RE - ANSWER✔✔ -Demographics
-Employment Conditions and Wage Levels
-Interest Rates
,-Mortgage Volume
-Building Activity
-Gov't Policies:
-Residential: Assisted Home Ownership Stimulation Program (F), Mortgage Rate
Protection Program (F), Home Buyers Plan (F), Community Home Program (AB),
Seniors; Self-Contained Housing (AB).
-Commercial/Rural: Canada Small Business Financing Loan (F), Canadian
Agricultural Loans Act (F), Farm and Commercial Loan (AB).
Through what does the AB gov't set up commercial/rural and resdiential
programs - ANSWER✔✔ -Res: Ministry of Municipal affairs, in accordance with
the Alberta Housing Act
-Comm: Ministry responsible for Agriculture and Rural Development.
Market Bubble - ANSWER✔✔ -Created when the price of RE increases faster than
the rate of inflation, household income, and economic growth; a temporary
situations in the business cycle and is characterized by a prolonged and self-
sustaining acceleration in RE prices, combined w feverish construction, aggressive
lending practices, and low interest rates.
Bubble Bursts - ANSWER✔✔ when elevated prices are no longer sustainable as
the # of buyers eventually diminishes along w the expectations of future price
increase; Interest rises indicates bubble has reached its peak.
-If Interest rates continue to increase, RE prices plummet adn teh bubble bursts
Settlement Years of the Canadian West - ANSWER✔✔ 1870-1905
, 1870-1905 - ANSWER✔✔ -In 1871, the fed gov't sent survey teams to divide the
western land into townships and sections for farming
-Dominion Lands Act passed in 1872 which provided lad at an attractive price to
head of the family or a 21yr old male. Worked to further encourage settlement
-In 1885, settlement began to occur after completion of the Canadian Pacific
Railway
-In 1896, the fed gov't freed up unused land for settlement, offering 'free' land to
settlers and providing bonuses for steamship companies and agents who helped
bring people to the region.
-Between 1901-1905, ~40000 homesteads were granted in AB by the Fed gov't
-In southern AB, ranching was preferred to agriculture, so large areas of land were
leased to cattle ranchers, thus allowing the dev. of an industrial-scale beef
industry.
Birth of a Province and its Early Years - ANSWER✔✔ 1905-1927
1905-1927 - ANSWER✔✔ -The parliament of Canada passed the Alberta Act on
sept. 1, 1905, which created the province of AB
-People headed west and began to populate previously vacant areas in search of
cheap, fertile land. The influx of grain harvests caused communities to develop
and a province-wide railway was expanded
-In 1906, the first legislation governing the RE industry was passed and the Real
Estate Commissions Act is enacted to prevent fraud in RE.
-RE ownership increased due to the western settlement campaign launched a
decade earlier by the fed. gov't.
-By 1914, more than one mil migrated to western Canada from Europe, Asia, and
North America
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