Real Estate Economics: a combined study A study of people how their actions affect property

Real Estate Economics: Introduction to Real Estate Economics-

Chapter 1 Flashcards Etymology of "Economy"Greek: oikonomia-oiko means house or household-nemein means to manage Real Estate Economics: a combined studyA study of people & how their actions affect property values.-Study that uses economic principles-Micro and macro analysis-Analyzes trends-Considers supply and demand-Links general economic theory and real estate practice Produce goods & services-rental-home for sale once fixed up-labor used in remodeling is service from the labor market Study human behavior-why so many people interested in this property-why was it listed at that price-what motivated the buyers to make the offers-why did the seller accept this offer-what incentives did the buyers have in such a dilapidated house How society uses land-remodeling fix-upper for profit, flip-buying as investment rental and hold until price appreciation-personal residence-what else?EconomicsSocial science that studies how societies use scarce resources to produce, distribute and consume goods and servicesThe application of scientific methods to study the human aspect of the world is a social science. Ex.sociology & psychology Real Estate-Land, surface, subsurface, airspace-Things affixed to land, buildings-Appurtenances, rights-See Real 101 for more details on the definition of real property Scarce resourcesRefers to landthe activities involved.Includes mining, logging, manufacturing, and use by consumersGoods and services are the product of these activities Real Estate EconomicsApplication of scientific methods to the study of human aspects of the world as they pertain to how society utilizes land to produce, distribute and consume goods and

services.General Economics:Principles & Theory+Real

Estate Principles & Practice=Real Estate Economics Why study Real Estate Economics?-Understand value fluctuations-Estimate real estate values-Solve problems-Understand fluctuations & changes to local Real Estate markets Scientific method-supply and demand model-imperfect market-cost and benefit analysis MacroeconomicsStudy of the national economy and its segments including national income, output, employment, and growth.

Real Estate Economics is NOT:-The study of general economics.-The study of real estate practice.Steward-generally, household members, in order to function properly and harmoniously, must make decisions effecting

everything and everyone:-The person who makes all of

these decisions is steward-thus, economy is synonymous with stewardship-At the single-family scale, a steward is usually who? - both parents acting as one, deciding who gets what room, who does the chores, who prepares the food, so forth-At the national level, whose responsibility of stewardship is it -Everyone's duty (accomplished through elected officials)-"Society" includes both people and

government of all levels: at the local level, every locality

bears the responsibility of a stewardship. San Diego, we the citizens, city government MicroeconomicsStudy of individual firms and households.