Housing Market Essay

810 words - 3 pages

In this activity you will need to go to the realtor.com website. Follow the instructions for "Finding a Home", and check housing prices for a 3-bedroom, 2-bath house in several cities, for example, San Francisco, CA; Topeka, KS; Dallas, TX; Concord MA; and Seattle, WA. Explain why housing prices vary from city to city. Clearly explain how supply and demand affect the prices of the homes and be sure to show your work.Based on the information obtained from Realtor.com I was able to see that from state to state housing prices varied. Though the sizes of the properties were the same 3 bedrooms 2 baths the prices fluctuated greatly. One State that I viewed as Indianapolis, IN. In this particular state I viewed a beautiful 3 bedroom 2 bath home that had many amenities which was listed for under $40,000. One factor that came into play regarding the pricing on this particular listing was it was a bank repo and had slight mold in the basement. Another factor that came into play was the fact that there are so many homes on the market and the population consists of mostly home owners. There are not many people renting in Indiana.Another factor was the size of the population. According to Wikipedia 2000 census 791,926 people were accounted for in the city of Indianapolis making it the most populous city in the United States at the time. It also ranked 12th largest City. The crime rate was 5 times the national average in the country. I would believe that a person looking at these statistics would take this information into consideration when looking to purchase a home and real estate agents know this and that is another reason why the prices are so low for purchasing a home in this locale. When there is a surplus of a given product (homes for sale in Indianapolis In) the producers of that product are willing to sell more than the consumer is willing to buy. What happens in this instance is that the price drops significantly until the surplus is eliminated.When I viewed houses in my own State of Connecticut I found that the prices were extremely high. The same 3 bedroom 2 baths home was listed for $329,000. Factors that were taken into consideration with this increase I was able to realize that one Connecticut is a common wealth state, the houses are more highly taxed and the demand for houses in the communities that I searched were greater than those in Indianapolis Indiana. Wikipedia states that many towns in Connecticut have...

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