The purpose of this model is to provide users with an understanding of
the relationships among different players in a real estate marketplace. The main focus of this model is on Demand, Supply & Prices in the period of 3 years(36 months).
Key players of the real estate marketplace includes investors, 1st homebuyers, banks, governments, housing developers and real estate agents. This model is designed in a real estate agent perspective, therefore, it is not included in the model.
In the real estate marketplace, HousingPrices can be affected by InterestRate, HousesForSale(Supply), WantingToBuy(Demand) and ConstructionCost. The Motivation for Demand can be affect by InterestRate. Demand for housing can be affected by HousingPrice and so is the supply for housing.
Change the variables below using the sliders or input the value you want and see how it affects the simulation.
When ConstructionCost is high, less Profit received and vice versa. When InterestRate is high, Motivation decrease-->Demand decrease and vice versa. Having longer or shorter SalesTime can affect SalesRatio which can affect increase/decrease of Sales. Having high/low initial amount of housing can affect HousesToMarket-->HousesForSale--> DesiredSales-->SalesRatio.