The Impact Of A Variety Of Factors That Influence Housing Prices

A closer scrutiny of the market was done by pulling three sales of homes closely comparable to the subject in terms of overall quality grade and the size of above grade living area (see County sales grid). The comps were sold in the range of $770,000 to $900,000. The subject is relatively inferior to comp #1 in terms of size of above grade living area and superior to comp #2 in terms of overall quality grade.

Making yourself aware of the neighborhood and its growth, studying when the market peeks or if it is still growing, and studying the areas general financial foundation of the city, are all important things you need to be aware of when buying a house. According to Mankiw, "In any market, buyers look at the price when determining how much to demand, and sellers look at the price when deciding how much to supply. As a result of the decisions that buyers and sellers make, market prices reflect both the value of a good to society and the cost to society of making the good." This is one of the principles of economics that can quickly affect the profit of this investment.

(22) A study was conducted in Malibu on the value of a house (Y, in thousands of dollars) as it relates to the distance the house is from the beach (X, in miles). The result was the regression equation, Y= 800-20X. In the equation, the number 20 represents.

Supply and demand play a major role in the value of real estate. The forces behind supply and demand include physical, economic, political, sociological, and location issues. The location of the subject property within St. Johns provides many positives with respect to value. First, the proximity to local highways not only provides for ingress and egress, but gives the subject neighborhood exposure to potential tenants or clients. It provides a quick means of transportation for employees or customers. Second, the location of St. Johns in proximity to Lansing and the rest of Michigan is an advantage. This proximity provides additional workforce, complementary businesses, and suppliers.

(e) Is there a significant relationship between the selling price and the assessed value of the house? Use 5 % level of significance.

The business literature involving human capital shows that education influences an individual’s annual income. Combined, these may influence family size. With this in mind, what should the real estate builder be particularly concerned with when analyzing the multiple regression model?

Additionally, he employs hedonic price analysis to describe the relationship between prices and neighborhood composition under current housing market conditions, which is a concept that I will be exploring in my paper. A defect in this source is that in some of the studies that Harris refers to, some studies only analyze the racial factors that affect a neighborhood and then the other ones that do consider the nonracial factors fail to come to a proper conclusion about what causes the lower housing prices in areas with higher Black populations. There is no study given that considers both racial and nonracial factors and has appropriate conclusion, which can affect the viability of many of the studies used in the source. However, a benefit of this source is that it addresses my three variables that I will be exploring – median gross rent, employment rates, and occupancy status of housing

Multifamily residential is a sector in real estate market. It is a type of housing “where multiple separate housing units for residential inhabitants are contained within one building or several buildings within one complex (Resource: Appendix 26).” The classifications of multifamily housing are various. According to the methods of classifying online (Resource: Appendix 27), the multifamily are divided into duplex or semi-detached (in some cities, it is called two-flat), three-flat, four-flat, townhouse, apartment building, mixed use building, and apartment community. Although multifamily targets for the number of householders are over one, each sub-segment of multifamily has different targets and focuses. Based on the variety of geology, demography, climate, hydrology, culture, history, and other factors, each sub-segment fits in different lands or cities. For example, duplex is common in Milwaukee (Resource: Appendix 28), because duplex is popular in Poland, and Polish immigrants built those houses to live in. In Chicago (Resource: Appendix 29), duplex is an old signature of American workplaces and living houses, and they are reserved in Chicago to satisfy the needs of residents there.

The United States will always recall autumn of 2008 as a time of financial terror, and rightly so. After the stock market crash, millions of Americans, previously unaware of the brewing crisis, lost their businesses, their jobs, and their homes. Even now, we still are in a period of recovery from the economic turmoil of that year.

Supply is also affected by the growth of a community over time. For example, a new city with 10,000 homes, expanding rapidly, will have low supply and therefore more expensive homes. An older city, however, with 50,000 homes and fewer and fewer new residents, will see

The data for the second test to be conducted by our group consists of lot sizes of the residential properties that are up for sale in Toronto and Vancouver. The samples are represented in m2 (metres squared; area of the land in which the residential properties are built on). The data taken are based on the properties that are up for

Housing prices are known to be high in California, and especially the Bay Area, but it is also known that some areas are more expensive than others. Although there are many factors to why housing prices are higher in one county than another, the quality of schools is one deciding factor of the housing prices. All parents want to give their kids the best possibilities in life, and many parents think that having their children attend a high quality school is one way to give them good opportunities for the future. However, it is not as easy as it might sound to have your children attend a high quality school. To be able to attend to an elementary school and through high school, you have to live in the district where the school is located.

Interest rates have a major economic impact on the real estate market. Interest rates directly affect property sales. Residential property realizes the greatest affect as interest rates have a considerable influence on a homebuyer’s capability to purchase a new property. The customer is affected when there are significant increases or decreases in interest rates. Declining interest rates lower the costs of obtaining a mortgage; this in turn creates higher demand for homes, and pushes home prices up. Conversely, high interest rates increase the costs to obtain a mortgage; these increases lower the demand for homes, which creates a decline in home prices. (Stammers, 2016)

The difference in asking and selling price could be correlated with the number of days on the market and very similar reasoning as to why it is a weak variable. The seller will most likely not allow much difference in their asking and selling price because of the appraised value. Also, looking at the coefficients of these two variables, I can see that change in them do not impact the price very much. The number of bedrooms is not a significant characteristic because it is correlated with the square footage. It seems a little odd that the number of garages is insignificant. However, the mean number of garages for this data is above one, meaning the average house in Blowing Rock has at least one garage. With a garage being fairly standard amenity for homes in Blowing Rock I can understand it not being a very significant factor on the price compared to the other characteristics. Living in a subdivision is not significant for this town as well.

For example, in finding out whether home price of a city is related to factors such as household income, number of households, unemployment rate, and quality of education in that city, one could develop a linear model using the multiple regression analysis. First, collect the home price data as the dependent variable, and income data, unemployment data etc. as independent variables. Second, apply the regression in Minitab software. Third, analyze the output of the regression model for the R-square, the p-values of the coefficient of the variables, and the VIF values.