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

An Investigation into the Housing MarketEconomicsDescribe and analyze the pitchs of housing in the local atomic number 18a over thelast 5 yearsThe housing market is one of the most talked about topics in the news.I assume this is due to the high-pitched influential potential it holds to the delay of the economy.In this essay I will focus on the causes in household prices. I willinvestigate how prices perplex changed nationally and locally. Iinterviewed an Inter counties estate agent to help my investigationand get his views on the situation.The price of housing fluctuates enormously. Not only does it vary from portion to region, unless also it is also very volatile within theseregions. There be many causes for these unstable prices. According toa spokes person form the familiar county estate agents says there aremany figures, which influence the housing market. He believes one ofthe main factors, which have been influencing the local housing marketin the southeast, is the l arge amount of people coming to work inCambridge recently.The bring out curve appeared to be vertically vertical in the short run.However, the high accept resulted in predictable high prices. Manybuilding companies have also respond to the increases in necessitate,however this response will non be immediate.Another reason why we saw the price of houses annul was due to the lowinterest range. This means the borrowing of money to barter for a house issignificantly cheaper, which is therefore retaliated with via theincrease in the essential cost of a house.London being so close is some other major pull factor for people 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 major role in opening up areas as commuter land. People often clothe up withlong commuting distances in order to escape from city living as afamily, or to find more affordable housing at greater distance fromwhere they w ork. This is why Saffron Walden has get down so posh, sincepeople have realised the benefits of life in a town of this size in amanageable distance to London.theoryIf interest rates are going down, will increase demand for housingwhich will then in turn increase house prices.When one bargains a house, one is paying for the actual house price, amortgage, and the interest rates on the ... ...eople willing topay the higher amounts. education facilities have also got aninfluence in the area, which is another pull factor for people movingwithin the southeast. There are also comparatively 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 ho using in an area,* The supply of houses,* Reputation for the area,* General interest rates influence the house-shopping behaviour,* Low interest rates enables people to buy cleanse or bigger houses,* Facilities in the area,* Local employment chances.Region high prices are less desirable, and this may mean many families donot have the economic ability to live in the area. The demand refersto the measurement of houses that purchasers are willing and able to buyat a definite price. Houses are scarce in relation to demand.