Assignment 3 depicts how the demand of buyers, the supply of sellers and the price all affect each other. This Insight Maker model indicates a replicate of a live real estate market.
When the demand to purchase a home is high and the supply to sell is low, people selling houses are able to charge higher prices due to lessen competition within the market. This also means that the market has reached a slow point within the year.
When the demand price is considerably higher than the supply price, this demonstrates that people are willing to spend more to buy the home than how much the sellers are selling it for. Therefore, it displays high levels of demand/supply with higher prices, followed by low levels of demand/supply and lower prices due to sellers selling the homes when demands are high. This will result in supply being low as there will be no properties left to sell.