EL CAMINO COLLEGE COURSE OUTLINE: RE 16

I. COURSE DESCRIPTION:

Course Title and Number: Real Estate 16 (RE16)
Descriptive Title: Real Estate Economics
Discipline: Real Estate
Hours Lecture: 3
Course Units: 3
Grading Method: Letter
Associate Degree Credit
Transfer CSU - Effective Date: prior 7/92.
Recommended Preparation: Real Estate Principles (RE11) , Real Estate Finance (RE14A) , Real Estate Appraisal (RE40), OR California DRE license OR California OREA appraisal license.

Catalog Description:
This course introduces the student to the aspects that tie economics and politics to real estate land use. Emphasis is on the factors which create values in real estate, including urban development, government policies, and requirements for development, as well as the business and real estate cycles.

NOTE: This course is approved by the California Department of Real Estate (DRE) for credit towards the required coursework for the California real estate broker examination. This course is approved for one of the two courses required for DRE salesperson license in addition to Real Estate Principles (RE11). This course is approved by the Office of Real Estate Appraisal (OREA) for 54 hours of C/E credit with 90% attendance for appraisal license renewal with closed book final examination.

II. COURSE OBJECTIVES AND METHODS OF EVALUATION

A. Course Objectives:
The student will:
1. Explain the how's and why's of real estate values and trends.
2. Define the economics aspects and concepts of real estate land use.
3. Identify business and real estate cycles.
4. Outline patterns of growth and development of regional areas, community and neighborhoods.
5. Identify types of real estate markets and outline their main characteristics.
6. Explain land use controls and the requirements of reports to the government agencies.
7. Demonstrate an awareness and understanding of economic events that occur on a national, state, and local level.
8. Interpret the effects that economic events have on real estate markets.
9. Outline and identify patterns of urban development.
10. Identify the elements of urban planning.
11. List the chief components of real estate value.
12. Outline one element of a general economic indicator and describe how it related specifically to real estate.

B. Methods of Evaluation:
1. Substantial writing assignments, including: written homework and term or other papers.
2. Skill demonstrations, including: class performance and field work.
3. Objective examinations, including multiple choice and true/false and fill-in-the blanks.

III. OUTLINE OF SUBJECT MATTER

Introduction
Basic economic principles
Business and real estate cycles
Money, credit and real estate activity
Regional and community economic development
Community and neighborhood growth patterns
Residential real estate markets
Business and rural real estate markets
The economic impact of real property taxes
Land use controls
Real estate investments, Part I: Principles of real estate investment analysis and income tax aspects
Real estate investments, Part II: How to analyze cash flow and compute rates of return
Applied real estate economics
Challenge of the future

IV. READING AND WRITING ASSIGNMENTS

Three hours of work per week, including class time, are required for each unit of credit.

A. A representative example of an assignment.
The student will complete a real estate economics project based upon an economic indicator and explain the relationship to real estate values. Each student will complete a book report on a video of a real estate economic term or theory.

B. Two hours of work outside of class are required for each hour of lecture or equivalent.
Each student will be required to perform the following outside of regular class time:
1. Study.
2. Answer questions.
3. Required reading.
4. Written work.
5. Internet search.

V. COLLEGE LEVEL CRITICAL THINKING ASSIGNMENTS

1. The student will demonstrate the ability to outline three graphs of general economic indicators (such as unemployment, GNP, interest rates, etc.) and describe how they relate specifically to real estate as a trend or predictor.
2. The student will demonstrate the ability to identify types of real estate markets and outline the main characteristic of each.

VI. PLANNED INSTRUCTIONAL ACTIVITIES

This course is taught using student study guide, workbook completion, handouts, note taking, writing, library and/or Internet search, and discussion between students and instructor.

VII. APPROPRIATE TEXT AND MATERIALS

Required:
California Real Estate Economics - Student Study Guide, newest edition, McKenzie, California Community Colleges, Real Estate Education Center, Pirate's Bookstore.
California Real Estate Economics,McKenzie and Betts, Prentice Hall Publishing, New Jersey.

Other Required Materials:
Real Estate Project, Grogan, newest edition, El Camino Bookstore.
Computer search for economic indicators and specific city/community/area data, etc. (such as Internet, government agency or similar).

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