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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.

Source: CNNMoney.com

Date: 4/24/2009

Keys: Economics, supply & demand, marketing, pricing

Link: http://money.cnn.com

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.

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