What is M1 1 vs M1 2?

The M1-2 Zoning District is a sub district of M1 Zoning in NYC. M1 is a Light Manufacturing Zoning District having manufacturing, commercial, and community facility uses. M1-1 Zoning is mapped in Upper Manhattan, The Bronx, Brooklyn, and Queens.

What Does M1 Mean in Real Estate?

Real estate is an important part of the economy, and understanding the terminology can help you make better decisions when buying or selling a property. One term you may have come across is M1, which stands for “monetary base”. But what does it mean? In this article, we’ll explain what M1 is and how it affects the real estate market.

What is M1?

M1 is a measure of the money supply in an economy. It includes all forms of currency (paper money and coins) as well as demand deposits, such as checking accounts. It does not include long-term savings accounts or other investments. The Federal Reserve uses M1 as an indicator of economic activity, as it provides a snapshot of how much money is available for people to use.

How Does M1 Affect Real Estate?

M1 affects real estate in two ways. First, it affects the availability of money for buyers. When M1 is high, there is more money available for people to use to purchase real estate. This increases demand and can drive up prices. On the other hand, when M1 is low, there is less money available and demand decreases, leading to lower prices.

Second, M1 affects interest rates. When M1 is high, the Federal Reserve may raise interest rates to prevent inflation. Higher interest rates mean higher mortgage payments, which can make it more difficult for buyers to purchase real estate. On the other hand, when M1 is low, the Federal Reserve may lower interest rates, making it easier for buyers to afford a mortgage.

FAQs

What is the difference between M1 and M2?

M2 is a broader measure of the money supply that includes M1 plus other forms of savings, such as money market accounts and certificates of deposit. M2 is a more comprehensive measure of the economy than M1.

Does M1 affect home prices?

Yes, M1 affects home prices. When M1 is high, there is more money available for people to use to purchase real estate, which can drive up prices. On the other hand, when M1 is low, there is less money available and demand decreases, leading to lower prices.

Does M1 affect mortgage rates?

Yes, M1 affects mortgage rates. When M1 is high, the Federal Reserve may raise interest rates to prevent inflation. Higher interest rates mean higher mortgage payments, which can make it more difficult for buyers to purchase real estate. On the other hand, when M1 is low, the Federal Reserve may lower interest rates, making it easier for buyers to afford a mortgage.

Conclusion

M1 is an important measure of the money supply in an economy that affects both the availability of money for buyers and mortgage rates. When M1 is high, there is more money available and higher interest rates, making it more difficult for buyers to purchase real estate. On the other hand, when M1 is low, there is less money available and lower interest rates, making it easier for buyers to afford a mortgage.