Question

What drives the housing market in the short run (less than one year)? when do you think the best time to buy might be? When do you think the best time to sell might be? Why might it be difficult for both to occur at the same time of the year?

Answer 1

What drives the housing market in the short ru Just like any other market, housing market is driven by the demand for and supply of houses. The demand for houses is a function of economic growth, market interest rates, real income and change in the size and structure of the demography, From the above determinants state of the economy, interest rates and real income affect the housing market in the short run. On the supply side, change in relevant policies, prices of raw materials and resources play a great role in affecting the housing market in the short run. Best time to sell a house and buy a house? Seasonal trends have been observed in the real estate market. Spring and summer is the best time to sell a house. Late summer and fall is the best time to buy houses. According to Opendoor.com, during the spring season more transactions take place and speedy disposal of deals observed. Also, the mark up profit range is high during this period than any other. Late summer and fall are the best season to buy a house due to lack of competition in the market and an anticipation of cooling off of the market on the advent of winter. Why might it be difficult for both to occur at the same time of the year? Because buyers and sellers have dissimilar motive, different interests. Buyers want to have a cheaper deal and sellers are profit oriented.