Demand Side Factors
1.0 Introduction
House price watching has become a countrywide recreation. Horrible housing market has become an issue to the world. People are taking this as an important topic where in the future, house price will continue increase. Some people are saying that it is a speculative bubble; houses are risky assets with volatile prices. In other words, it might face over demand or under supply. In seller market, when the market demand for possession in the exacting area is high and when there is existing of shortage of high quality possession, such as scarce in supply, then the power of balance in the market will shifts to the seller. For the reason, it is apt excess demand in the market for good possession. Seller flexible to wait for offers on their possession to exceed their minimum selling price. In opposite, when the demand for any type of housing is weak and when there is excessive of possession available on market, then the powers will swap to potential buyers. Does anyone ensure that the house prices in rapid growth are causes by the fundamental factors of demand and supply and when it is an indefensible bubble? In this report, we explain how to appraise the situation of house prices, the factors that affecting the house price to increase rapidly, both whether the existences of bubble and what principal factors support housing demand, in a method that is argument in economic theory. Showing both Demand side factors and Supply side factors as well as in the long run and short run. In the short run, demand side factors tend to be more important come to influence the house price because the willingness and ability of potential home buyers or investors to make an offer to purchase a particular property.
2.0 Demand Side Factors:
2.1 Economic growth
Over a long period, economic growth will certainly push up incomes and house prices and increase the demand for better quality. It’s just like a cycle; economic growths lead to a rise in income and eventually will
House price watching has become a countrywide recreation. Horrible housing market has become an issue to the world. People are taking this as an important topic where in the future, house price will continue increase. Some people are saying that it is a speculative bubble; houses are risky assets with volatile prices. In other words, it might face over demand or under supply. In seller market, when the market demand for possession in the exacting area is high and when there is existing of shortage of high quality possession, such as scarce in supply, then the power of balance in the market will shifts to the seller. For the reason, it is apt excess demand in the market for good possession. Seller flexible to wait for offers on their possession to exceed their minimum selling price. In opposite, when the demand for any type of housing is weak and when there is excessive of possession available on market, then the powers will swap to potential buyers. Does anyone ensure that the house prices in rapid growth are causes by the fundamental factors of demand and supply and when it is an indefensible bubble? In this report, we explain how to appraise the situation of house prices, the factors that affecting the house price to increase rapidly, both whether the existences of bubble and what principal factors support housing demand, in a method that is argument in economic theory. Showing both Demand side factors and Supply side factors as well as in the long run and short run. In the short run, demand side factors tend to be more important come to influence the house price because the willingness and ability of potential home buyers or investors to make an offer to purchase a particular property.
2.0 Demand Side Factors:
2.1 Economic growth
Over a long period, economic growth will certainly push up incomes and house prices and increase the demand for better quality. It’s just like a cycle; economic growths lead to a rise in income and eventually will