Demand | Insight Maker

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.

Ali Akturk /// 43289061 // Real Estate Workings

Ali Akturk

Clone of basic warehouse stock control

Mihail Nedelcu

The real estate market is heavily influenced by social and economical factors that effect the price of dwellings. Two of the main factors that contribute to not only the housing market but most consumables are supply and demand.

Supply is the amount of one good or service in that market. A market driven economy could utilize supply to regulate price. Generally, if the supply is higher than the demand for that good the price will be lower. If the supply is lower than the demand, the price will tend to increase.

Demand is the amount of consumers that want/need that good or service. Price is also influenced by demand. Generally, if the demand is higher than the supply the price will increase. If the demand is lower than the supply, the price tends to decrease.

Price can be derived from demand and supply.

The following model depicts how the changes in supply and demand of Households effect pricing. The sliders replicate how each of the variables interact with price.

Secondary factors, such as interest rate, foreign investors and government policies also all weigh in on determining a price for a dwelling.

William Pale 42877083 (Assignment 3)

William Pale

Comprehensive model to predict water system operations given hydrologic, economic, and managerial parameters/data

HW 7 Water Supply and Demand

Matt Grehm

Clone of Clone of basic warehouse stock control

sensey

Very simple ward occupancy model.

ward DCAQ with units

geoffdougherty

The housing market is heavily dependent on two main factors; supply and demand. Both play a major role in determining an equilibrium price for both sellers and buyers in the real estate market.

Residents, or the general population of individuals, place significant reliance on financial institutions to provide sources of capital i.e mortgages, to fund their purchases of homes. The rate of interest charged by these organisations in turn gives buyers (consumers) purchasing power, creating demand.

Supply is made up of the number of houses in the market, and consequently, of these, the number of houses which are up for sale. As the prices of houses for sale increases, the demand for purchase of these properties decreases. Conversely, the lower price, the higher the demand. Once the market reaches an equilibrium point, to which buyers and sellers form an agreement, houses are sold accordingly. An underlying factor to consider is the cost of construction, which impacts producers, or suppliers in this instance, and thus the number of homes for sale, and the expected profit sellers hope to achieve.

The simulated graph highlights the common scenario within the housing market, to which we see that as price increases, the total number for houses for sale decreases, generating an opposite slope to the price. As the price for houses increases, the demand for the houses decreases and vice versa. The equilibrium is evident at time 14 whereby the price of houses and the number of houses for sale overlaps which in turn creates a market to which both buyers and sellers are happy.

Clone of The effect of Supply and Demand on the Housing Market Assignment 3 (43323871)

nat borto

Supply and Demand tend to oscillate back and forth though Price.

Understanding Relationship and Their Implications: The Essence of AND?

Clone of Supply and Demand/SFD

CJ Poh

השינויים בביקוש ובהיצע כתלות בעיכובים בהעברת המידע

Clone of Supply and Demand/SFD

David Codish

Clone of basic warehouse stock control

Alvin Resmana

Supply and Demand tend to oscillate back and forth though Price.

Clone of Supply and Demand/SFD

Carmen

Documentation

The Insight shown demonstrates how demand and supply in a real estate market can affect pricing.

Demand, Supply and Price have been represented by stocks. Each has an inflow where it has an increase in stock, and a corresponding outflow where stock is decreased.

Linking each stock and flow is a variable that changes that which it is linked to. These have been labelled appropriately. Each variable takes a decimal value and multiplies it with that it is linked to, such as the rate of demand affecting the price set as 0.001*Demand. This is to generate the loops required to show the rise and fall in price, demand and supply.

Adjustments can be made to the price, supply and demand stocks to simulate different scenarios. Price can be between 400 (400,000) and 1000 (1,000,000) in accordance to average housing prices. Demand and supply can be between 0 (0%) and 100 (100%), although having these set as realistic figures will demonstrate the simulation best.

Each simulation can be focused on how either demand and price interact over time or supply and price. These are shown in different tabs.

When the simulation is carried out, the way in which demand and supply rates affect pricing can be seen. Demand and supply are shown with price following shortly after with a slight delay, since changes in market behavior does not immediately affect prices of housing.

It should also be noted that the lines that represent each stock do not directly reflect the prices of housing in reality. Prices do not fluctuate so rapidly from 400 to near 0 like they do on the graph, however these are just representations of the interactions between each stock in a marketplace.

Clone of Zachary Chapman - 43309399 - Assignment 3 Final

Jeb Eddy

Author: Brandon Sultana 43268080

This is a 3 year model that depicts the flows between Price, Supply and Demand in the real-estate market.

Throughout the model viewers can observe how the figures Price, Supply and Demand alter each other in an increasing or decreasing way.

Price is decreased by the growing supply of HousesForSale and increased by the growing demand of people wanting to buy. As Price decreases, HousesForSale increases and Price decreases as HousesForSale increase.

From the use of the graph it is evident that over 3 years the flow of house prices fluctuate and therefore more houses are sold at different times over 3 years.

The purpose of this insight is to help consumers and Businesses depict the best times to either buy or sell houses to maximize profits.

Additionally the market had to respect the number of possible consumers who are opting to build new houses, based on the rise and fall of house prices the real-estate analyses the new houses and residents in the area grow overtime.

Due to population growth, This cycle remains continuous so long as the real-estate company manages their resources effectively

Clone of Real-Estate Cycle Brandon Sultana 43268080

William Pale