Question

Theory demand and it's implications to the housing market​

Answer 1

Answer:

The primary factor influencing demand for housing is the price of housing. By the law of demand, as price decreases, the quantity of housing demanded increases. The demand for housing also depends on the wealth of households, their current income, and interest rates.

Answer 2

Some of the factors that will influence housing demand include lower interest rates or borrowing costs. ... As more buyers enter the market, the demand for housing increases in turn. And if there remains a limited supply of housing inventory, prices in a low interest rate environment may rise even more.