Supply and demand is a basic economic principal in which a product’s price is either positively or negatively affected by the availability of the product. Consequently, if there is a high demand for a product that is in low supply, the price of this product will escalate due to market conditions that will support a higher price. However, if there is low demand for a product that is in high supply, the price of this product will decrease due to market conditions that are influenced by the high availability of this product.
By applying this principal of supply and demand to buying a home, it is easy to see how buying a home during a time of high home availability as well as low demand will mean that you will be able to buy a home for a lower price. This is particularly true when comparing asking prices of homes to a time where local real estate market conditions have low supply of homes for sale but high demand of people who want to live in this area. The different points of supply and demand in an area will have a great influence on the asking price of homes for sale. They will also affect a variety of other important financial aspects to buying and owning a home.
There are a number of ways that supply and demand changes in a given area. Although the real estate market is considered to be one of the most stable industries in the United States of America with a strong growth tendency, as evident in the fact that housing prices have never declined... [continues]
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