The complex of relations between a specific organism and its environment. Economic Base Analysis Appraisal method of deriving property values where the current and future economic conditions are measured in a particular area. The ability of the size of the property to accommodate the desired economic purpose. Economic Force Ability of economic factors to influence the real estate market. Economic Indicators Measures that look to the past, current and future direction of the economy and may have an impact on the real estate market.
Price indices measure the inflation rate.
It reflects changes in the general price level, or the CPI, before they actually occur. The GDP Implicit Deflator is another index of inflation that is used to isolate price changes in GNP calculations from real changes in economic activity. Business activities are examined as an indication of a change in the economy. Economic indicators show a homebuyer or a real estate investor something about national and local economic conditions. Industry trends are also revealed.