Humber/Ontario Real Estate Course 2 Exam Practice

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Prepare for the Ontario Real Estate Exam with our comprehensive Humber Course 2 Exam Practice quiz. Engage with multiple choice questions and detailed explanations, designed to help you excel.

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!

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Which of the following factors might increase the demand for residential properties?

An increase in the family formation rate.
An increase in the unemployment rate.
An increase in mortgage interest rates.
A significant increase in personal debt.
A decrease in job availability.
An overall rise in property taxes.

The correct answer is: An increase in the family formation rate.

An increase in the family formation rate is likely to increase the demand for residential properties. When more families are being formed, there is a higher need for housing, leading to a greater demand for residential properties. This is because new families, whether starting out or expanding, often require larger living spaces, such as single-family homes or apartments. As a result, an increase in the family formation rate generally leads to an increase in demand for residential properties. Options B, C, D, E, and F do not typically increase the demand for residential properties. An increase in the unemployment rate, an increase in mortgage interest rates, a significant increase in personal debt, a decrease in job availability, and an overall rise in property taxes are more likely to negatively impact the real estate market by reducing purchasing power or creating economic uncertainty, which can lead to a decrease in demand for residential properties.