Introduction to Market Cycles Quiz

In which phase of the housing market cycle is new construction limited due to stabilization post-recession?

Which phase of the housing market cycle is characterized by an oversupply of properties leading to increased vacancies and possibly declining property values?

The recession phase in the housing market cycle is often marked by high unemployment and reduced consumer spending.

Identify three historical examples of the housing market expansion phase in the U.S. and briefly describe each.

What is a recommended strategy for investors during the recovery phase of the housing market cycle?

Arrange the phases of the housing market cycle in order.

During the hyper-supply phase, it is advisable for investors to heavily invest in new construction projects.

List three tips for investors during the recession phase of the housing market cycle and briefly explain each.

Arrange the following actions based on their advisability during the hyper-supply phase from most advisable to least advisable.

Reflect on how understanding the housing market cycle could inform a real estate investor’s decisions regarding when to buy, sell, or hold properties. Use historical examples provided in the chapter to support your reflection.