Alabama Real Estate Practice Exam

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Prepare for the Alabama Real Estate Exam. Utilize flashcards and multiple-choice questions, each coupled with hints and explanations. Ace your upcoming test!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Which of the following is considered an economic factor in real estate?

Population growth
Interest rates
Building codes
Zoning laws

The correct answer is: Interest rates

Interest rates are one of the key economic factors in real estate. Interest rates affect the affordability of mortgage payments and can impact the demand for housing. Higher interest rates make it more expensive to borrow money for a home purchase, which may decrease the demand for housing and potentially lower home prices. Lower interest rates can have the opposite effect, increasing demand and potentially raising home prices. Building codes and zoning laws are regulatory factors, while population growth is a demographic factor in real estate.