While predicting real estate cycles is difficult, a key indicator used to evaluate where a property is within the cycle is:
A) the level of household income
B) the form of land use
C) the size of the property
D) the number of building permits issued

Question

Quizplus · Accepted Answer

The number of building permits issued is a leading indicator of the real estate cycle as it reflects the level of demand for new construction, which can indicate whether the market is expanding or contracting. High levels of building permits indicate a growing market while lower levels indicate a slowdown.

While Predicting Real Estate Cycles Is Difficult, a Key Indicator