Factors Affecting Housing Market

Only available on StudyMode
  • Download(s) : 370
  • Published : September 20, 2012
Open Document
Text Preview
Factors Affecting Housing Market

Financing - Most consumers have to borrow from a lender in order to afford the purchase of a home. When banks get stricter on loan approvals, fewer houses get purchased. If loans are being approved rapidly and more people can afford to by the homes, the home, supply will decrease, allowing owners the choice to increase the price.

Supply and Demand - Supply and demand impacts prices in any industry. If more consumers want a good than there are of those goods available, the price increases The longer a home and homes in the same market sit on the market, the more the owners and investors have to reduce the price in order to encourage a sale.

Perception - Although perception is not reality, it heavily impacts the market. If an investor drives around a neighborhood and sees "for sale" signs that have "reduced price" or similar discount offers he could believe that there is too much inventory that isn't selling. He would think it's a terrible time to buy.

Read more: Factors Affecting Housing Prices | eHow.com http://www.ehow.com/list_5941607_factors-affecting-housing-prices.html#ixzz1b5QBaCLy

Factors affecting Stock Market

Interest Rates - The interest rate is the measure of pricing levels, whether they increase or decrease for a certain time period. An increase in its pricing will indicate an inflation rate that will go up.

Read more: What Economic Factors Affect Stock Prices? | eHow.com http://www.ehow.com/list_5966748_economic-factors-affect-stock-prices_.html#ixzz1b5ROaqT6

Supply and Demand - One of the major factors affecting stock price is demand and supply. The trend of the stock market trading directly affects the price. When people are buying more stocks, then the price of that particular stock increases. On the other hand if people are selling more stocks, then the price of that stock falls.

Perception - When you get positive news about a company then it can increase the buying...
tracking img