Deck 4: Focus on Neighborhood, Community, and Market

Question 1

Real estate markets do not meet any of the criteria of a perfect market.

Answer 1

True

Question 2

The neighborhood cycle is noted by development, stability, decline, and renaissance
or renewal.

Answer 2

True

Question 3

The sales price chart shown below suggests an average monthly increase of about one percent for the area under study.
Month Average Price
April $170,000
May $171,700
June $173,500
July $174,000
August $176,000
September $178,750
October $180,500

Answer 3

True

Question 4

A perfect market occurs only when an active and large role is played by government.

Question 5

The so-called central town is selected mainly to provide services along a
transportation route.

Question 6

The neighborhood is the starting point of the market data search in an appraisal.

Question 7

The direction and speed of price movements may suggest how strong or weak the
market is.

Question 8

A town seldom changes its main function.

Question 9

The boundaries of a neighborhood may be determined by either physical, economic, or legal factors.

Question 10

The economic base of a town depends upon its production for local use.