Supply and Demand in Real Estate Field
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You are between jobs and have decided to relocate to a city west of the Mississippi River, but you are unsure of what size or type of city you and your family can afford to live in.
Choose 4 cities west of the Mississippi River, each of a different size, and research the housing prices for a 3-bedroom, 2-bath condo for each city. Determine how supply and demand can affect the prices of these homes. In a PowerPoint presentation, submit data findings that include economic factors within that area that may influence your decision, or factors that have prohibited an area to be chosen.
Present the data in the following format:
• 1 slide of housing data findings. Provide the housing prices of each chosen city west of the Mississippi for a 3-bedroom, 2-bath condo or house.
• 2-3 slides of your preferred city to relocate with your reasoning for this choice
• 1-2 slides: Explain at least 2 reasons why housing prices vary from city to city
• 3-5 slides: Explain 3-4 ways in which supply and demand affect the prices of the homes
• 3-5 slides: Include any supply and demand figures or calculations to support your reasoning
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Solution Summary
A supply and demand in real estate fields are discussed.
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The four cities:
Lincoln, NE, 220,000
St. Louis, MO 318,172 (city only)
Indianapolis, IN 782,000 (city only)
Cheyenne, WY 60,000
Lincoln: The median sale price for all properties has remained very stable over time, with a general rise in price that is seemingly unaffected by the depression beginning in 2007. This could possibly be the fact that the two main employers in the city are state institutions: it is the state capital for one, and the University of Nebraska-Lincoln, with 40,000 students (partially funded by Warren Buffet) is dominant in the city as an economic force and property owner.
The three bedroom, two bath condo prices have increased by about 5% over the last 5 years. Overall, the last five years sees general housing prices increase by almost 14%. A three bedroom condo over the last 5 years has remained very stable. Per square foot, it has remained at $84-86 since 2000.
References:
http://www.trulia.com/real_estate/Lincoln-Nebraska/market-trends/
St. Louis: in 2013, housing sales have increased by almost 12%. Median price went up 7% to about $220,000. In St. Louis Country, the median is well over $300,000. St. Louis comprises the city proper, and a huge, sprawling suburban world that stretches for about 30 miles to the west. The condo prices with these ...
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