Question

With regard to changes in the marketplace, real estate regulators are typically?

1) reactive
2) proactive
3) unresponsive
4) heavy-handed

Answer 1

Real estate regulators are generally reactive in their approach, responding to market changes rather than being proactive. They often use command-and-control policies in areas like housing and rent control, impacting the market's flexibility.

Step-by-step explanation:

With regard to changes in the marketplace, real estate regulators are typically considered to be reactive. This means that they respond to changes in the market rather than anticipating them and creating regulations to guide market behavior beforehand. When it comes to housing and rent control or market policies that affect how markets function, regulators often implement command-and-control policies, which are requirements that apply to all producers and can limit the flexibility of both buyers and sellers in the marketplace.