The Intriguing Physical Characteristics of Real Estate
What are some physical characteristics of real estate?
A) Real estate is nonhomogeneous.
B) Land is immobile.
C) Land is durable.
D) The market is slow to respond to change in supply and demand.
Answer:
The characteristics nonhomogeneity, immobility, and durability are physical descriptors of real estate. However, "the market is slow to respond to change in supply and demand" is an economic characteristic, not a physical one. Therefore the correct option is D).
In the context of real estate, three commonly recognized physical characteristics are: nonhomogeneity, immobility, and durability. Nonhomogeneity means that no two parcels are exactly the same. Immobility refers to the fixed location of land - it cannot be moved. And durability signifies that land is indestructible.
However, the statement that "the market is slow to respond to change in supply and demand" is not a physical characteristic of real estate, but rather an economic one. This refers to the fact that changes in real estate prices and quantities are slow to occur due to factors such as the time it takes to build homes, zoning regulations, and consumers' decision-making processes.