ACTIVITY: This is a 2-Part activity. You will write 3 paragraphs TOTAL.
For this assignment, you will simply type your paragraphs into the text box here. However, please SAVE a copy of your assignment to a Microsoft Word document or google doc. You will need a copy of it later for your final paper, “Real Estate Economic Forecast.” Scroll down to the end to view an example! Attached. are. my. previous assignments
Instructions:
Begin with your name, date, and class number at the top of the paper.
Write 3 paragraphs: an introduction, a conclusion, a review of APA formatting.
The introduction and conclusion (Part 1) will be included in your term paper.
The paragraph on APA formatting (Part 2) will NOT be included in your term paper.
Submit here in the assignment text box, and save a copy for your term paper.
PART 1. Introduction & Conclusion Paragraphs
Write 2 paragraphs. Each paragraph must be 5 sentences long. It is a summary of your final paper, which includes your Week 2, 3, 4, 5, 6, & 7 Activities. The focus of your final paper is to demonstrate your knowledge and skills you gained in this class. You will be successful because of your knowledge, as well as your work experience and leadership characteristics. This is personal to YOU and should not be theoretical in nature. Please pull out your submissions for your Week 2, 3, 4, 5, 6, & 7 Activities and review each of them in preparation for the final paper. Scroll down and refer to the model example below.
Introduction
The first paragraph will be your introduction for the report. Write in complete sentences to summarize the knowledge you gained in this class: What does this report cover? Write one sentence each to summarize the major sections of the paper: Insert introductory paragraph of 5 sentences to cover each area of this report: economic principles and theories; financing and money markets; local area demographics and data research; trends in the real estate market; forecast of the real estate market; and strategies and solutions for the local area. Do not capitalize common words. Do not include citations. Write your thesis statement as the last sentence — it should be regarding your real estate market forecast and your predictions for the local area.
Conclusion
The second paragraph will be your conclusion for the report. Start by re-stating the thesis statement from the introduction. Then, recap the major sections of the paper, just like you did in the introduction, except use slightly different words. Do not use any sources, citations, or references in the introduction or the conclusion paragraphs. It must be all your own original work.
Writing a Thesis Statement
A thesis statement is your theory that you are researching. The research in this paper will either prove your thesis correct or incorrect. It is one or two sentences. Click the links below to learn how to write an analytical thesis statement for your paper.
https://www.youtube.com/watch?v=TotaRoYh60Y&list=PLyIWxhuqxujNsrW7FNzQMDIm1H3xCxLG2&index=5&t=0sLinks to an external site.
https://owl.purdue.edu/owl/general_writing/the_writing_process/thesis_statement_tips.htmlLinks to an external site.
https://writingcenter.ashford.edu/writing-a-thesisLinks to an external site. (click on “Analytical Thesis Statement” to see an example)
PART 2. APA Style & Formatting Review
For the second part of the assignment, you will watch educational videos, visit instructional websites, discover scholarly resources, and learn about APA formatting. Once you have completed the activities, please write at least 3 sentences stating what you learned. This will acknowledge you completed the coursework. Simply type your information into the text box here. But first, download the student paper submission checklist and use it as a reference when writing and proofreading your paper. This paragraph will NOT be included in your final term paper.
Download & save my checklist to your computer:
Student Paper Submission Checklist.pdfDownload Student Paper Submission Checklist.pdf
APA Formatting – Paragraph Instructions
Complete each of the following activities in any order you choose:
Watch the following video playlist “Perfect Papers, APA Style” in youtube: https://www.youtube.com/playlist?list=PLyIWxhuqxujNsrW7FNzQMDIm1H3xCxLG2Links to an external site.
Visit this APA style website and check out the various pages: https://owl.purdue.edu/owl/research_and_citation/apa_style/apa_formatting_and_style_guide/general_format.htmlLinks to an external site.
How to insert citations and bibliography using Microsoft® Word® tools. Start this video at the 2 minute mark:
Take a free writing class from VVC Writing Center and learn how to write in APA style: www.vvc.edu/tutoring-services/writing-center.shtmlLinks to an external site.
Learn how to use Google Scholar to search for scholarly resources:
Lastly, write a paragraph stating what you learned about APA formatting. The paragraph must contain at least 3 complete sentences.
EXAMPLE:
Following is an example of the assignment to be submitted and provided as a model. Do not copy the text below, but you can use the structure as a template. The thesis statement is highlighted in both the introduction and conclusion. Do you see how the conclusion “mirrors” the introduction? It is the same concept, but re-worded and stated in reverse order. The introduction and conclusion are like book ends for your report. DO NOT COPY this example. Please write in your own words. Be original!
Ima Student
January 1, 2022
BRE-139-xxxxx Real Estate Economics
Introduction
This report details the real estate economic market in the city of Victorville, California. It begins by discussing economic principles and theories, as well as financing and money markets. Next the local area demographics are displayed, along with data research on the issue of home ownership and housing affordability in Victorville. Trends in the real estate market are discussed, including a chart and a graph illustrating the local real estate market sales. After that, the report outlines my forecast of the real estate market based on my research. Finally, the report provides strategies and solutions for the problem of home ownership affordability in Victorville. Overall, my forecast in this report provides a well-researched and extensive analysis of the real estate market.
Conclusion
This report highlights my prediction of the local real estate market based on my analysis and research. It begins by illustrating the real estate economic market in the city of Victorville, California and the local area demographics. Data research on the issue of home ownership and housing affordability in Victorville is outlined. The economic principles and theories of … are explained, as well as financing and money markets. Trends in the local real estate market are discussed, including a chart and a graph illustrating Victorville real estate market sales. The report outlines my forecast of the real estate market based on data research. Most importantly, the report provides strategies and solutions for the problem of home ownership affordability in Victorville.
Bre139
Master Muhammad
4-18-24
Textbook: Huber, et al., 2016.
Huber, et al.
ACTIVITY: Economic Principles and Theories (Term Paper Part 1)
First paragraph
Apart from finding employment, studying real estate economics helps understand how
different factors affect the landscape and helps make better real estate investment decisions. The
law of supply and demand state that with low supply and high demand, the price is likelier to
increase, but with high supply and low demand, the prices are likelier to decrease (6-7) so they
influence real estate by determining price equilibrium based on the number of properties
available and the demand for those properties. Inflation is an ongoing and sustained increase in
prices in an economy, while deflation is a general, ongoing fall in prices, and stagflation involves
the combination of slow economic growth, high prices, and high unemployment. Another
economic principle is filtering down applied to housing, whereas new high-quality housing
become available, individuals will move up to these new units and leave the slightly used,
older homes available at affordable prices for lower-income groups (17). The four real estate
cycles are recovery, expansion, hyper-supply, and recession, which are essential for forecasting
future market trends, vital for investors.
Second Paragraph
One of the most influential economists is John Maynard Keynes, who rejected the
classical view of markets as self-correcting, but instead advocated that governments intervention
through fiscal policy would help decrease unemployment and stabilize the economy (38).
Capitalism and socialism have similarities like their shared focus on the ownership and
allocation of productive assets, but they affect real estate due to their differences like capitalism
promotes private ownership and limited government involvement, while socialism advocates for
collective ownership and state regulation of property and housing (41-43). Imperfect competition
is an environment where the market has various characteristics, like companies trading different
services and products and fighting for individual market share, a practice seen in real estate
because there are many characteristics distinguishing properties from one another (46). The
concept of “highest and best use” relates to real estate as it is the highest possible value of
property and its highest use to attain or achieve highest return and value (Bravi & Rossi 481).
Price and value differ because price is the amount a buyer paid for a property, while value is the
worth of future benefits derived from the property.
Work cited
Huber, W., Messick, L. P., & Piva, W. (2016). Real Estate Economics (6th ed.). Covina, CA:
Educational Textbook Company.
Bravi, Marina, and Rossi, Stefano “Real estate development, highest and best use and real
options.” Aestimum (2012): 479-498.
1
Bre 139 Real Estate Economics
Master Muhammad
4-24-24
Textbook Author: Huber et al.
FINANCING & MONEY MARKETS
One of the money principles is the influence of the federal funds rate on the prime rate (p.
90). This principle highlights how changes in the federal funds rate set by the Federal Reserve
impact the interest rate that banks charge their most credit-worthy borrowers for short-term loans.
The federal funds rate remains flexible, and this fact directly impacts the prime rate and borrowing
cost for both individual clients and companies. On page 90, the author illustrates the mission of
the Federal Reserve, the functioning body whose operations are carried out with the objective of
influencing interest rates and monetary policy of the United States. “The federal funds rate, by
affecting the Prime Rate (p. 90), points at the central Fed position which directs market regulations
and economic environment.” Comparing monetary and fiscal policies, as addressed on page 94,
both aim to influence economic conditions. Monetary policy focuses on managing the money
supply and interest rates, while fiscal policy involves government decisions on taxation and
spending. Despite their differences, both policies aim to achieve economic stability and growth.
Discussing the balance of trade, highlighted on page 96, implies a difference between exporting
and importing that can then influence currency value and companies’ prices in the domestic market.
The last rule that lies in comparing the stock market with the real estate market report is that both
of the services provide an investment medium, but they have different kinds of asset classes and
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risk profiles. Funding rates, being the means to stem real estate demand and prices, give evidence
of the interrelationships that go on between the financial markets and the economy.
Federal Housing Administration (FHA) is a government agency established to facilitate
access to homeownership by providing mortgage insurance for loans made by approved lenders,
particularly for borrowers with lower credit scores or smaller down payments (p. 101). Fannie Mae
and Freddie Mac are government agencies whose main business activities are in the secondary
mortgage market when they purchase the outstanding mortgages on behalf of the lenders as well
as the possible guarantee of the volatile loans. . In the secondary mortgage market, mortgages are
bought and sold as securities, allowing lenders to replenish their funds and continue issuing new
loans (p. 101). The borrowers who want to take out mortgages with lenders have to repay them for
providing funds for a certain period. The lenders send bills with an interest payment, which is
usually a percentage of the loan amount and the points, representing the points that the borrower
pays upfront at the closing to lower the rate of interest. Lenders deal with quite a few risks while
transferring assets through real estate, such as interest rate fluctuations, inflation, and property
value fluctuations, and all these factors lead to the default of loan repayment and underperformance
of lenders.
3
Reference:
Huber, W., Messick, L. P., & Piva, W. (2016). Real Estate Economics (6th ed.). Covina, CA:
Educational Textbook Company.
1
Bre139 Real Estate Economics
4-29-24
Master Muhammad
Textbook: Huber, et al., 2016
Victorville, California in San Bernardino County has a current population of
approximately 139,810 as recorded in the year 2024 (World Population Review, 2024). With
regard to its median age, the city is at 31. 8 years having a racial make up that consist of Whites
(42. 07%), Two or more races (18. 9%), and Black or African Americans (17. 17%) among other
ethnicities (U. S. Bureau of Labor Statistics, 2024). The average family earns $87,081 per year;
however about one out every nineteen families live below federally defined poverty level(19.
15%); and individual residents earn an estimated $23,0231 on average (World Population
Review, 2024). The majority of homes in Victorville are occupied by married couples which
represent about 71. 4% with an average household size of 3. 54 people(World Population
Review, 2024). The top employers in the local area include fields such as education, local
government, health care, manufacturing, retail and small businesses (Livability, 2024). The
median price of listed houses in Victorville, CA stood at $450,000 with a yearly growth rate
estimated as 5. 9% (NAR Housing Statistics, 2024)..
Homeownership in the High Desert area of Victorville, California, in San Bernardino
County is posing a challenge for residents. The increasing costs of buying property have created
a situation where most people who wish to own homes cant afford one. Homeownership has
turned into an obsession because individuals now believe that their houses are only economic
2
commodities (CBC, 2022).The Victor Valley is home to several communities, but the one in
which most people live is Victorville, with a population of over one hundred twenty two
thousand. In Victorville, the median value for houses is around $270,000. For rental rates,
specifically at High Desert Villas in Victorville, you can get yourself a one-bedroom unit from
$1,389 upwards monthly. The affordability index is medium. Many families and individuals
experience the impact of this issue since they cannot easily get cheap housing. The problem
spills over to surrounding areas whereby neighbors undergo financial stress due to reduced
chances for mortgage uptake and/or affordable loans (p. 278). The rising real estate sector has
compounded the issue on affordability especially for potential buyers; this has led to a sellers
market (CBC, 2022). The lack of affordability in home ownership has had profound effects on
property values and the local real estate market in Victorville. As housing costs continue to
outpace earnings in Canada, owning a home has become increasingly unattainable for many
families (CBC News, 2022). The demand for investment properties has also played a part in
raising prices thus reducing options available to those intending to buy houses for their very first
time. According to the Bank of Canada report cited in the CBC article, investors were
responsible for 30% of home purchases in early 2023, while first-time homebuyers accounted for
only 43% (CBC News, 2022). This shift in buyer demographics has led to a reduction in
available housing supply for first-time buyers and increased competition among investors.
Consequently, neighborhoods witness unequal distribution of homeowners as well as
overstretched resources occasioned by high population under rental or extended family
accommodation situations (Huber et al. 2016). These trends arise from and influence highly
expensive property valuations within which most potential clients cannot reach (CBC News,
2022).
3
References
CBC News. (2022). The dirty secret of the housing crisis? Homeowners like high prices.
Retrieved from https://www.cbc.ca/news/business/housing-prices-affordability-realestate-1.7170775
Huber, W., Messick, L. P., & Piva, W. (2016). Real Estate Economics (6th ed.). Covina, CA:
Educational Textbook Company.
U.S. Bureau of Labor Statistics. (n.d.). Retrieved from https://www.bls.gov
U.S. Census Bureau. (n.d.). Retrieved from https://www.census.gov
NAR Housing Statistics. (n.d.). Retrieved from https://www.nar.realtor/research-andstatistics/housing-statistics
Livability. (n.d.). Retrieved from https://livability.com/ca/victorville/education-careersopportunity/victor-valley-ca-top-employers/
World Population Review. (n.d.). Retrieved from https://worldpopulationreview.com/uscities/victorville-ca-population
1
Bre 139 Real Estate Economics
Master Muhammad
5-7-24
Textbook: Huber, et al., 2016
This paragraph elaborates on real estate which is also one of the five areas and how it affects
the economy, how it affects the consumer’s demand. The interest rates are a type of economic
environment and always have an impact on the housing demand due to various factors being
negatively affected by the mortgage, both the buyers and sellers (Huber et al., 2016, p. 263).
A modern niche in the housing market is student housing, which fulfils college students`
needs through the supply of convenient locations and amenities (Huber et al., 2016, pp. 270271). The affordability index helps to understand the situation with the acquisition of housing
in a given region by determining how much one can afford to spend on this housing. This is
an indication of a competitive market in which many potential buyers are scrambled over a
few bankable properties. Another trend is the emergence of not-ordinary living options. To
illustrate, a small home is a more budget-friendly and eco-friendly living option which uses a
small space rather than a traditional lifestyle comparably.
Analysis of Real Estate Trends
The two graphs that are highlighted in my independent research show the current values of
the real estate field. The first chart is titled “U.S. Mortgage Rates by Year from Federal
Reserve Bank of St. Louis. The data is displayed in a line graph which indicates an upward
trend in mortgage rates beginning in 2024. The trend is a sharp increase. It goes well with the
fact that the downward trend of affordability in the housing market as higher mortgage
interest rates make the monthly housing mortgage costs go higher (Federal Reserve
Economic Data | FRED | St. Louis Fed, 2024). The second graph is titled “Inventory of
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Unsold Existing Homes” figure from the NAR, and it shows a levelled-up trend in housing
inventory throughout 2021 and 2024 (Nar). This fact out that the picture of the market seems
to be tilted in the favor of the buyers compared to how the scene was before that seller’s
market a few years ago. The two graphs indicate a cooling down in the housing market,
however upward-moving mortgage rates remain a risk to buyer affordability, but inventory
growth can be an advantage in lessening buyer competition in this market.
3
References
(2024). Federal Reserve Economic Data | FRED | St. Louis Fed. https://fred.stlouisfed.org/
(2024). notitle. https://www.nar.realtor/
Huber, W., Messick, L. P., & Piva, W. (2016). Real Estate Economics (6th ed.). Covina, CA:
Educational Textbook Company
Bre 139 Real Estate Economics
Master Muhammad
5-16-24
Textbook: Huber, et al., 2016
Real Estate Market Forecast
Term Paper Part 5
Land planning is the arrangement of the physical environment to protect the welfare and
health of the people. One of the viewpoints of planning is the separation of uses using zones and
buffer zones for different uses (375). An environmental impact report (EIR) is a study of ways a
subdivision impacts the ecology of its surroundings (381). It is used to identify environmental
effects to help in decision-making. According to Huber et al. (2016), real estate development in
an area can result in a change in its character and the direction of its economic growth (p.403).
Luxury home development increases land value in the area, making low-cost housing
development impractical. Elsewhere, lower-cost housing prevents high-cost housing
development. Also, industrial growth prevents the building of better-quality homes and attracts
the same industrial uses to the region. In addition, a single development affects populations and
jobs directly by increasing them and also supports personnel and businesses indirectly. It also
increases tax bases and the need for public services, jobs, and community services (p.403). The
majority of economists assert that private residential building development activities result in the
removal of a nation out of economic recession. Real estate development impacts the economy of
other businesses, such as furniture, banking, and waste management (p.404). For example,
rentals and resales of old housing and real estate commissions lead to increased sales of furniture
and banking. The risks faced by developers include risks of nature, such as natural calamities;
economic risks, such as changes in interest rates; and political risks, including zoning changes
(407). Financing is vital since it makes planning and development successful because it protects
them against changes in interest rates and enables developers to keep titles to their projects (417).
From my research of the data sources, current market situation, and recognized trends, it
can be noted that the real estate market in the next year will increase, although by a small
percentage (Sorokin & By, 2020). The increase will be due to several factors, such as lower
mortgage rates and increased real income. In two years, the market will remain strong depending
on issues such as advancement in technology, urbanization, and interest rates. In five years, the
market will rise due to increased remote working, increased urban populations, changing
demographics, and emerging technologies (Housing market predictions., n.d). It will be difficult
to predict the market trend for real estate for the next ten or twenty years due to insufficient data,
but I predict strong growth due to reduced mortgage rates and emerging technologies.
References
Housing market predictions for the next 5 years: Real estate outlook for the US, UK & Europe.
(n.d.-a). https://www.techopedia.com/housing-market-predictions
Huber, W., Messick, L. P., & Piva, W. (2016). Real Estate Economics (6th ed.). Covina, CA:
Educational Textbook Company
Sorokin, B. O., & By: (2020, July 10). Commercial real estate market insights. www.nar.realtor.
https://www.nar.realtor/commercial-real-estate-market-insights
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