Assignment Economics 1

Running Head : EconomicsEconomicsNameCollege /UniversityHagerty , J . R (2008 . admit inventory Drops As Some Sellers Retreat The Wall StreetJournal . Retrieved September 2 , 2008 , from Dow Jones Company , Inc Website : HYPERLINK http /online .wsj .com /article /SB9235655 .html http /online .wsj .com /article /SB9235655 .htmlThe job discussed in the article has something to do with changes in the in truth the three farmings industry due to the light in supply of properties that clients may barter for in urban communities . This information was based on the information provided by ZipRealty Inc . which was observed last July . According to ZipRealty , Inc , the simplification of supply of houses in metropolitan countrys was greatly caused by the origin of houses by their owners from the marketplace and the growing remove for houses in opposite areas in the commonwealth such as Boston , Las Vegas Riverside-San Bernardino , atomic number 20 , and Sacramento . Apparently properties in these areas are economical attracting clients to purchase from these cities or states (Hagerty , 2008Aside from the effect of growing conveys of properties in other areas to the decrease in supply in metropolitan areas , it is also touch on property constructions . Housing constructions have also slowed down as caused by high address of housing and the rising race . With less big-ticket(prenominal) properties in other areas in the country , clients are looking to purchasing properties I or constructing houses in these areas rather than resort to properties in metropolitan areas . Economist Julia Coronado (Barclays great , New York ) have predicted that the current direction of the real land industry leave behind continue to decline until next twelvemonth (Hagerty , 2008 ) The changes in the percentage of available properties in each area are illustrated in the following graphPercentage Change in Housing Stock in Metropolitan Areas in the CountryThe real estate industry in the country is influenced by the changes in the patterns of demand and supply .

Due to the decline in the economy of the unite States , people are becoming practical in their outgo habits . In purchasing properties such as houses , condominium units , townsfolk houses , etc , they consider the price regardless of the location of these properties . Therefore , they mold their options to cities or states in the country that twirl less expensive properties . This consumer behavior predicts that the demand for properties in areas offering them for low price will add-on . These areas will be looking into the addition of property purchases lessening client populations in other areas who offer properties at high costs . This follows the law of supply and demand which states that if the demand for a particular good or trade good increases , then sellers will provide more supplies Moreover , if the cost of supply is inexpensive , then demand will increase to great proportionsThe influx of clients in areas offering properties at a low cost will cause the decline of real estate businesses in other areas . Since nobody profits from marketing houses in areas where asking price for properties are high , it will leave them no choice but to extract their properties...If you sine qua non to get a full essay, order it on our website: Ordercustompaper.com

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