What characterizes a growth period in a real estate market?

A growth period in a real estate market is characterized by a gain in public favor and acceptance. During this time, there is often an increase in demand for properties, as prospective buyers perceive value and potential in the market. This is typically accompanied by rising property values and a positive sentiment regarding investment in real estate.

The appreciation of properties leads to economic expansion in the area, attracting new businesses, residents, and investments. This can create a cycle where the growing interest in properties further fuels development and enhances the desirability of the neighborhood, thereby reinforcing the growth phase.

The other options do not align with the characteristics of a growth period. An increase in regulatory controls can lead to uncertainty in the market, a decline in public interest indicates a lack of demand, and stagnation of property values suggests a lack of growth or interest in investment, which is not consistent with the indicators of a growth period.