Comments on: What is happening to the supply and demand of existing homes in the US? http://yrimc.com/blog/2009/05/27/what-is-happening-to-the-supply-and-demand-of-existing-homes-in-the-us/ By Professor Yelenna Rondon, MSIM, CFA. Fri, 13 May 2011 04:24:07 +0000 http://wordpress.org/?v=2.8.4 hourly 1 By: tas319 http://yrimc.com/blog/2009/05/27/what-is-happening-to-the-supply-and-demand-of-existing-homes-in-the-us/comment-page-1/#comment-714 tas319 Tue, 14 Jul 2009 03:44:46 +0000 http://yrimc.com/blog/?p=145#comment-714 In the recession that we are facing today, we see that the supply and demand curves of the housing market are shifting, the supply of houses is increasing with a shift to the right while the demand is decreasing causing the curve to shift to the left. People who cannot afford to pay their mortgages are forced into bankruptcy causing banks to foreclose on properties that they don't need. In the recession that we are facing today, we see that the supply and demand curves of the housing market are shifting, the supply of houses is increasing with a shift to the right while the demand is decreasing causing the curve to shift to the left. People who cannot afford to pay their mortgages are forced into bankruptcy causing banks to foreclose on properties that they don’t need.

]]> By: kmaz http://yrimc.com/blog/2009/05/27/what-is-happening-to-the-supply-and-demand-of-existing-homes-in-the-us/comment-page-1/#comment-711 kmaz Thu, 25 Jun 2009 11:34:25 +0000 http://yrimc.com/blog/?p=145#comment-711 These days, people just cant afford to buy homes (not everyone, but alot)..if you can afford then its a great time to buy. Mortgages have been given out to people who cant afford them, which is an obvious problem. WHY anyone would buy a home they cannot afford, i dont get it. These days, people just cant afford to buy homes (not everyone, but alot)..if you can afford then its a great time to buy. Mortgages have been given out to people who cant afford them, which is an obvious problem. WHY anyone would buy a home they cannot afford, i dont get it.

]]> By: krissyelizaz http://yrimc.com/blog/2009/05/27/what-is-happening-to-the-supply-and-demand-of-existing-homes-in-the-us/comment-page-1/#comment-683 krissyelizaz Mon, 22 Jun 2009 02:29:59 +0000 http://yrimc.com/blog/?p=145#comment-683 It's really not a suprise to me that the supply of these homes are increasing, while the demand is decreasing. People just cannot afford to buy! (However, if you CAN afford it, this is a great time to buy a home or buy land) I know several people who have actually downsized because of this economic crisis. It's really heartbreaking to see. A family member of mine had a beautiful home, a summer home, a boat, and other luxuries. Unfortunately, it is really hard to maintain these assets.. especially when people are being laid off from work, and certain jobs are just sliding downhill. (For instance, having a job to do with mortgages.. the mortgage rates were just so low, that most people either re-financed or purchased new homes. Mortgages were eventually given to people that couldn't afford it. This clearly = a problem. ) This topic did not suprise me one bit. --or the equation of.. supply is increasing and demand is decreasing. My heart goes out to people that are having a difficult time with affording their homes, or anything to do with having or purchasing a home. It’s really not a suprise to me that the supply of these homes are increasing, while the demand is decreasing. People just cannot afford to buy! (However, if you CAN afford it, this is a great time to buy a home or buy land)
I know several people who have actually downsized because of this economic crisis. It’s really heartbreaking to see.
A family member of mine had a beautiful home, a summer home, a boat, and other luxuries. Unfortunately, it is really hard to maintain these assets.. especially when people are being laid off from work, and certain jobs are just sliding downhill. (For instance, having a job to do with mortgages.. the mortgage rates were just so low, that most people either re-financed or purchased new homes. Mortgages were eventually given to people that couldn’t afford it. This clearly = a problem. ) This topic did not suprise me one bit. –or the equation of.. supply is increasing and demand is decreasing. My heart goes out to people that are having a difficult time with affording their homes, or anything to do with having or purchasing a home.

]]> By: tullis88 http://yrimc.com/blog/2009/05/27/what-is-happening-to-the-supply-and-demand-of-existing-homes-in-the-us/comment-page-1/#comment-664 tullis88 Wed, 03 Jun 2009 18:34:41 +0000 http://yrimc.com/blog/?p=145#comment-664 The issue of current supply and demand in thew housing market is very interesting. In many cases people are struggeling to make payments on their existing homes, and some are considering selling thier homes to eaither rent or lease. For those people who are not home owners, their leases and rent payments are also going up. Becuase many people are not in the finacial position for buying a home, the prices in the housing market are dropping considerably. If you are in the marlet for a new home, and have the finavcial stababilty to purchase a home now is the best time. Even though the supply in the housing market is shifting up to the left, the demand in housing is shifting down to the left due to the economic recession. The issue of current supply and demand in thew housing market is very interesting. In many cases people are struggeling to make payments on their existing homes, and some are considering selling thier homes to eaither rent or lease. For those people who are not home owners, their leases and rent payments are also going up. Becuase many people are not in the finacial position for buying a home, the prices in the housing market are dropping considerably. If you are in the marlet for a new home, and have the finavcial stababilty to purchase a home now is the best time. Even though the supply in the housing market is shifting up to the left, the demand in housing is shifting down to the left due to the economic recession.

]]> By: adri143 http://yrimc.com/blog/2009/05/27/what-is-happening-to-the-supply-and-demand-of-existing-homes-in-the-us/comment-page-1/#comment-663 adri143 Tue, 02 Jun 2009 00:40:50 +0000 http://yrimc.com/blog/?p=145#comment-663 The supply of selling homes in the United States is very abundant. Many people are not buying homes because they can not afford them. The demand is very low because people do not have money to maintain a place of their own. The supply all over America is very high for homes. According to the Wall Street Journal, homes sales went up last month because the prices are coming down and people are beginning to invest. Many people's homes are going up for foreclosures because they either can not afford their mortages or many people are getting layed off. I do believe we will see prices of homes go down, but I still dont think the demand of them will go up because people do not have alot of money to invest. The supply of selling homes in the United States is very abundant. Many people are not buying homes because they can not afford them. The demand is very low because people do not have money to maintain a place of their own. The supply all over America is very high for homes. According to the Wall Street Journal, homes sales went up last month because the prices are coming down and people are beginning to invest. Many people’s homes are going up for foreclosures because they either can not afford their mortages or many people are getting layed off.

I do believe we will see prices of homes go down, but I still dont think the demand of them will go up because people do not have alot of money to invest.

]]> By: diamond http://yrimc.com/blog/2009/05/27/what-is-happening-to-the-supply-and-demand-of-existing-homes-in-the-us/comment-page-1/#comment-661 diamond Mon, 01 Jun 2009 14:41:19 +0000 http://yrimc.com/blog/?p=145#comment-661 It seems as though the decline in sales prior to last month had the supply curve shifting down and to the right for such a period of time that alot of people do not believe it will be getting any lower. Alot of investers and first time home owners are on the look out for theese bottom line prices. People are already expeting to see the housing market recover and have yet another "boom". (I do not think this will be happening... because the banks aren't going to back another mishap of the American dream). Yet, talk of flipping property is back on the tounges of everyone. It seems as though the decline in sales prior to last month had the supply curve shifting down and to the right for such a period of time that alot of people do not believe it will be getting any lower. Alot of investers and first time home owners are on the look out for theese bottom line prices. People are already expeting to see the housing market recover and have yet another “boom”. (I do not think this will be happening… because the banks aren’t going to back another mishap of the American dream). Yet, talk of flipping property is back on the tounges of everyone.

]]> By: CTgirl http://yrimc.com/blog/2009/05/27/what-is-happening-to-the-supply-and-demand-of-existing-homes-in-the-us/comment-page-1/#comment-660 CTgirl Mon, 01 Jun 2009 02:03:08 +0000 http://yrimc.com/blog/?p=145#comment-660 According to the article in Wall Street Journal, Existing-home sales rose last month, as distressed properties and low prices helped bolster the market. The demand of housing market is decreasing because home owners are struggling in paying their higher mortgage than their property's value. Some home owners are facing unemployment, so their income causes the demand curve to shift to the left. However, sales are driving prices lower. The supply curve is likely to shift to the upward left. There will be more housing available in the market,but people can't afford to own a house. Since expected future prices is one of the causes that make the supply curve shift. I think it is gonna take longer time for supply and demand to fine the market equilibrium. According to the article in Wall Street Journal, Existing-home sales rose last month, as distressed properties and low prices helped bolster the market.
The demand of housing market is decreasing because home owners are struggling in paying their higher mortgage than their property’s value. Some home owners are facing unemployment, so their income causes the demand curve to shift to the left. However, sales are driving prices lower. The supply curve is likely to shift to the upward left. There will be more housing available in the market,but people can’t afford to own a house. Since expected future prices is one of the causes that make the supply curve shift.
I think it is gonna take longer time for supply and demand to fine the market equilibrium.

]]> By: SavyEconomist http://yrimc.com/blog/2009/05/27/what-is-happening-to-the-supply-and-demand-of-existing-homes-in-the-us/comment-page-1/#comment-659 SavyEconomist Thu, 28 May 2009 03:41:04 +0000 http://yrimc.com/blog/?p=145#comment-659 It seems as though the housing market has shifted to the left on the supply curve. In the past month it might have moved to the right a little on the demand, but I don't think people should celebrate just yet. Someone made a comment on the WSJ article how many sales taking place are repossessed homes. Does the flurry of sales really give any hope? Its true that young adults for the most part are in no position to buy homes, and probably won't be for a long time. For that reason I don't see the housing market improving any time soon. It seems as though the housing market has shifted to the left on the supply curve. In the past month it might have moved to the right a little on the demand, but I don’t think people should celebrate just yet. Someone made a comment on the WSJ article how many sales taking place are repossessed homes. Does the flurry of sales really give any hope?

Its true that young adults for the most part are in no position to buy homes, and probably won’t be for a long time. For that reason I don’t see the housing market improving any time soon.

]]> By: denofearth http://yrimc.com/blog/2009/05/27/what-is-happening-to-the-supply-and-demand-of-existing-homes-in-the-us/comment-page-1/#comment-658 denofearth Thu, 28 May 2009 02:31:06 +0000 http://yrimc.com/blog/?p=145#comment-658 CNN/Money had a comparable article. Existing home sales rose slightly. It looks like the demand is slightly shifting right and is driven by 1st time home buyers picking up cheaper houses. The recent sales won't have an effect on the supply due to sellers putting properties on the market for the spring selling season, CNN/Money had a comparable article. Existing home sales rose slightly. It looks like the demand is slightly shifting right and is driven by 1st time home buyers picking up cheaper houses. The recent sales won’t have an effect on the supply due to sellers putting properties on the market for the spring selling season,

]]> By: NDN1 http://yrimc.com/blog/2009/05/27/what-is-happening-to-the-supply-and-demand-of-existing-homes-in-the-us/comment-page-1/#comment-657 NDN1 Thu, 28 May 2009 02:12:38 +0000 http://yrimc.com/blog/?p=145#comment-657 The comparison of the housing market is reflective in what has happened over several months and the steady decline in existing homes. The article in the WSJ in my opinion is trying to show a reflective upswing in the housing market, while also showing that there is always a consumer caution of the waiting game (waiting for the price to become even lower). This is demonstrated by a move down in cost of those houses sold. However, the excess in inventory or surplus must be moved out, before the demand can increase or shift back to an equilibrium of the housing market that is estimated to be slow by some economists. With the current demand being low because of the variables and increase in the unemployment numbers, less people will have the money or ability to get the credit needed to purchase these homes. With these factors and a stagnant economy more people are forced into selling their homes in this time when the value has decreased, the supply has increased, and the demand has decreased causing shifts and moves at the same time. The comparison of the housing market is reflective in what has happened over several months and the steady decline in existing homes. The article in the WSJ in my opinion is trying to show a reflective upswing in the housing market, while also showing that there is always a consumer caution of the waiting game (waiting for the price to become even lower). This is demonstrated by a move down in cost of those houses sold. However, the excess in inventory or surplus must be moved out, before the demand can increase or shift back to an equilibrium of the housing market that is estimated to be slow by some economists. With the current demand being low because of the variables and increase in the unemployment numbers, less people will have the money or ability to get the credit needed to purchase these homes. With these factors and a stagnant economy more people are forced into selling their homes in this time when the value has decreased, the supply has increased, and the demand has decreased causing shifts and moves at the same time.

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