Shown here is a diagram of a Real Estate Market where in which variables like price, supply and demand are found to be present and play a role in the sides of the buyers and the sellers.
When prices go up the supply of sellers increase while the demand of buyers decrease. When prices go down the supply of buyers increase in the real estate market while the demand of sellers decreases.
It is the simple economic rule found in plain sight in the real estate market.
1 - Price elasticity of Supply with the sellers is high due to their ability to adapt to sudden changes in prices in the market.
2 - Demand elasticity of price on the other hand was not proven to be as high in the calculations since there was no factual data as to how fast the buyers reacted to an increase in supply or a decrease in price. Although seen is the increase in demand when a the price is lowered.
3 - Increases in Median Price lead to a increased Supply from the Sellers.
4 - Decrease in Median Price lead to a increased demand from the Buyers.