Alabama Real Estate Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

A shortage of homes in desired areas has what effect on home values?

No change

Decrease

Increase

When there is a shortage of homes in desired areas, home values will increase. This is because the demand for homes is high, but the supply is low. This creates a competitive market, driving up the prices of homes in these areas. Option A is incorrect because there is a change in home values. Option B is incorrect because home values would not decrease in a market with high demand. Option D is incorrect because while home values may fluctuate in general, the trend would be an overall increase due to the shortage of homes in desired areas.

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Fluctuate wildly

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