WEEK 1 DISCUSSION
Course: BRE 139, Real Estate Economics
Hijab Zaidi
Textbook Author: Huber, et al.
Chapters 1 & 2
Overview
I reviewed two chapters from the textbook Real Estate Economics by Huber, Messick, and Pivar. These two chapters cover important information on Real estate Economics. The first chapter discussed the principles. The second chapter discusses the economic theories and measurements.
Key Concept from Chapter #1
One important key concept I learned from Chapter One was about America’s economic history. This information is found on page four of the textbook. Factories were produced as a result of the industrial revolution to help supply the goods, which were required for Westward expansion and an expanding population. To provide labor for the industry, immigration was promoted.
Key Concept from Chapter #2
The second important key concept I learned from chapter two was on land and the real estate market. This information can be found on page 44 of the textbook. It was interesting to learn that the real estate market is not perfect and also carries flaws. The land has several advantages, including the ability to be used and hence gaining value from that usage. I also learned that the real estate market is always shifting as new buyers and sellers enter the market.
Key Concept from Chapter #1
The last important key concept I learned was also from Chapter One regarding the principle of Real Estate cycles on page 20 of the textbook. When the property is in the development stage the value increases. This is when the property and the surrounding area reach plateau, which we call maturity. If there is a decline the physical structural decay would cause lower prices, which helps investors invest in the area and assist the life cycle.
Summary
It was interesting to study these chapters. Chapters one and two taught me a lot. I found the content to be really good, and it clarified what is real estate economics about. I will revise this information and I am excited to learn more in the upcoming chapters.
