Final answer:
The contraction phase in a real estate cycle is characterized by decreased property values and prices, rising vacancy rates, and limited access to financing for property purchases. However, increased demand for properties does not occur during this phase.
Step-by-step explanation:
In a real estate cycle, the contraction phase is characterized by a decrease in property values and prices due to reduced demand in the market. This can be caused by factors such as economic downturns or oversupply of properties. Therefore, option A) Decreased property values and prices does occur during the contraction phase.
On the other hand, the other options - B) Increased demand for properties, C) Rising vacancy rates in properties, and D) Limited access to financing for property purchases - do not occur during the contraction phase. During this phase, demand for properties typically decreases, leading to rising vacancy rates. Additionally, limited access to financing is more common during economic downturns or recessions when lenders may be more cautious.
Therefore, the answer is B) Increased demand for properties does not occur during the contraction phase in a real estate cycle.