What effects the market
- Supply Vs. Demand – supply is the number of houses available for purchase, while demand is the number of buyers in the market.
*Please note that the higher the supply, the less demand because buyers have more options. DEMAND DRIVES THE PRICES. Think of it like an auction. When only one person is bidding on something, the price stays at its offer price. But, if there are multiple bidders, or a greater number of demand, the price will increase.
- Jobless Rate – the higher the rate, the more people are out of work (if they are not working, they are not looking for homes)
*Please note that even when the news tells you that things are good because the jobless rate decreased, remember, people dont buy houses when they get jobs, they buy them when the get promotions.