The model shown provides a visual representation of the processes that occur when Buyers (Demand), the Sale of Homes (Supply) as well as Price interact when it comes to the Real Estate Marketplace.
Price is the main factor that ultimately influences the movement of both supply and demand within the real estate marketplace. Those considering purchasing a new home will be influenced to buy when prices are lower than that of the median price whereas sellers prefer to sell their homes higher than the median price in order to make a higher return.
