University of Central Florida (UCF) REE3043 Fundamentals of Real Estate Practice Exam 1

A robust real estate market is characterized by increased property prices. This rise typically signifies strong demand for real estate, often driven by various factors such as a growing economy, low interest rates, and increased consumer confidence. When more people or investors are eager to buy properties, competition drives up prices.

In this context, high vacancy rates and low transaction volumes would indicate weakness in the market, as they reflect an oversupply or lack of demand. Similarly, high renovation costs might suggest that properties are either aging or requiring significant investment to be market-ready, which could be a deterrent in a thriving market. However, when property prices are on the rise, it is generally a positive indicator that the market is thriving as it reflects confidence and investment in real estate.