For many people, real estate is one of the largest investments they will make in their lifetime. It also is a major source of revenue, supporting millions of jobs in the construction, lending, brokering, and insurance sectors. Real estate markets are influenced by a number of factors, including economic conditions, demographic trends, government regulations, and market cycles.

The real estate market comprises everything that is used for residential or commercial occupancy, such as single-family homes, apartments, and other multifamily rental properties, office buildings, retail spaces, and even portable dwellings like houseboats. It is distinct from the commodities market in that goods can move to consumers, while real estate is spatially fixed. This immobility is one of the biggest reasons for real estate price fluctuations.

Real estate markets are regulated by local and state governments to create an environment that is fair and transparent for all participants. Governments enforce rules and regulations that ensure the integrity of property records, prevent fraud, and promote sustainable development. They also provide public infrastructure and services, which directly impact the value and appeal of property. Real estate investors can leverage the power of a well-regulated real estate market to make informed decisions and mitigate risks. Moreover, understanding the real estate market fundamentals can empower buyers and sellers to be more effective at negotiating and navigating transactions.