Sales of newly constructed homes are showing indications, ever so slight, that the housing decline may be near an end, a government report showed Friday.
Keys: Economics, supply & demand, marketing, pricing
Questions for discussion:
- Housing is a major economic factor that determines employment and production levels in many related industries. This article provides a good illustration of the forces of supply and demand at work to set market prices for new and existing housing. Explain how that works.
- Explain why some people would be motivated to buy, now that lower prices and interest rates have reduced the cost of housing?
- Explain why some people would be motivated not to buy.