Demand and Supply

How demand and supply of residential housing has affected the price and quantity for both buyers and sellers? There are many factors, which determine the answer to this question, and one of most important aspects of demand and supply of residential housing is pricing and quantity. Demand and supply plays a very important role in both the buyer and seller lives. A good seller would know his/her market. Buyers often offer properties that a seller can either accept or reject. Demand and supply of residential housing has affected the price and quantity for the buyers market because when demand both for new and older housing is weak and when there is a oversupply of properties addressable on the market, then it substitutes to prospective clients. Clients have a much comprehensive choice of housing available which would allow them to discuss a price that is lower than the issued price. (“Tutor2U”, n.d.). In the real estate field the seller have power when it comes down to the market demand properties in a specific region is high and shortage of good quality properties. This happens because there is possible redundant demand in the market for satisfactory properties. Vendors can wait for offers on their property to transcend their negligible merchandising value.(“Tutor2u”,n.d.). The buyer or seller can directly affect the price on the market. Buyers and sellers become more competitive when a single buyer or seller has the power to influence the price on the market. Quantity demanded is the total amount of a good that buyers would choose to purchase under given condition. The given conditions include:
• price of the good • income and wealth • prices of substitutes and complements • population •preferences (tastes).
• expectations of future prices

In conclusion, there are plenty of reasons why demand and supply of residential housing has affected the price and quantity for both buyers and sellers. Numerous of sites provided reasonable information

References: Tutor2U.(n.d). Retrieved September 16, 2011, from (http://tutor2u.net/economics/content/topics/housing/housing_demand_supply.htm Price Theory Lecture 2: Supply and Demand. (n.d). Retrieved September 16, 2011, from http://www.csun.edu/~dgw61315/PTlect2y.pdf