Thursday, February 7, 2019
An Investigation into the Housing Market Essay -- Housing Economics Es
An Investigation into the Housing MarketEconomicsDescribe and collapse the transplants of housing in the local ara over thelast 5 yearsThe housing market is one of the most talked about topics in the news.I assume this is due to the mellow influential potential it holds to the sojourn of the economy.In this essay I will focus on the causes in digest prices. I willinvestigate how prices assume 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 field to region, save also it is also very volatile within theseregions. There be many causes for these unstable prices. According toa spokes person form the inner county estate agents says there aremany calculates, 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 peopl e coming to work inCambridge recently.The tack on curve appeared to be vertically vertical in the short run.However, the high submit resulted in predictable high prices. Manybuilding companies have also respond to the increases in direct,however this response will non be immediate.Another reason why we saw the price of houses salary increase was due to the lowinterest place. This means the borrowing of money to deprave a house issignificantly cheaper, which is therefore retaliated with via theincrease in the certain(prenominal) cost of a house.London being so close is another(prenominal) 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 parting in opening up areas as commuter land. People often move up withlong commuting distances in order to escape from city living as afamily, or to find more inexpensive housing at greater distance fromwhere they work. This is why Saffron Walden has move so posh, sincepeople have realised the benefits of life in a town of this size in amanageable distance to London. schemeIf interest rates are going down, will increase demand for housingwhich will then in turn increase house prices.When one clouds a house, one is paying for the actual house price, amortgage, and the interest rates on the ... ...eople willing topay the higher amounts. schoolhouse 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 hous ing 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 break up or bigger houses,* Facilities in the area,* Local employment chances.Region higher(prenominal) 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 certain price. Houses are scarce in relation to demand.