The presence of real estate cycles presents a major challenge when forecasting real estate market parameters.If the market value of a residential developer's project exceeds its construction costs,an increase in the supply of units will occur,which will most likely be followed by:

Question

Quizplus · Accepted Answer

An increase in the supply of units typically leads to more competition among landlords, which can result in a decrease in real rental rates as they try to attract tenants.

The Presence of Real Estate Cycles Presents a Major Challenge