An Investigation into the Housing Market Essay -- Housing Economics Es

An Investigation into the Housing MarketEconomicsDescribe and analyse the changes of housing in the local area over the give way 5 yearsThe housing market is one of the most talked about topics in the news.I assume this is receivable to the high influential potential it holds to therest of the economy.In this essay I will focus on the causes in house prices. I willinvestigate how prices have changed nationally and locally. Iinterviewed an Inter counties landed estate agent to help my investigationand get his views on the situation.The price of housing fluctuates enormously. Not only does it vary fromregion to region, but also it is also precise volatile within theseregions. There are numerous causes for these unstable prices. correspond toa spokes person form the Inner county estate agents says there aremany factors, which influence the housing market. He believes one ofthe main factors, which have been influencing the local housing marketin the southeast, is the large amount of plurality coming to achievement inCambridge recently.The supply curve appeared to be vertically vertical in the short run.However, the high demand resulted in predictable high prices. Many build companies have also respond to the sum ups in demand,however this response will not be immediate.Another reason why we saw the price of houses come near was due to the lowinterest rates. This means the borrowing of money to buy a house issignificantly cheaper, which is therefore retaliated with via theincrease in the actual court of a house.London being so close is another major pull factor for stack wantingto live as near as possible to where work is more likely to be found.Commuting times and facilities like trains and motorways play a majorrole in opening up areas as commuter land. People often put up withlong commuting distances in order to escape from city living as afamily, or to find more affordable housing at greater distance fromwhere they work. This is why Saffron Walden has become so posh, sincepeople have realised the benefits of biography in a town of this size in amanageable distance to London.HypothesisIf interest rates are going down, will increase demand for housingwhich will then in turn increase house prices.When one buys a house, one is paying for the actual house price, amortgage, and the interest rates on the ... ...eople willing topay the higher amounts. Schooling facilities have also got aninfluence in the area, which is another pull factor for people movingwithin the southeast. There are also relatively low borrowing costsfor mortgages, which will encourage people to buy and sell theirhouses.According to The Hometrack Property Company, house prices in Englandand Wales fell in May for the second month in a row. The percentagechange in prices over the last year in each region can be seen in thechart.In conclusion prices for housing are high in the southeast due to anumber of factors* The demand for housing in an area,* The supply of hous es,* Reputation for the area,* General interest rates influence the house-shopping behaviour,* Low interest rates enables people to buy better or bigger houses,* Facilities in the area,* Local employment chances.Region Higher prices are less desirable, and this may mean many families donot have the economic ability to live in the area. The demand refersto the quantity of houses that purchasers are willing and able to buyat a certain price. Houses are scarce in relation to demand.