Nobody downloaded yet

Microeconomics and Property Market - Assignment Example

Comments (0) Cite this document
In this assignment, the author tells about the specific microeconomic concepts that are directly related to the real estate market. The effects of knowing those concepts are also discussed in this assignment along with making a conclusion about the use of those theories …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.5% of users find it useful
Microeconomics and Property Market
Read TextPreview

Extract of sample "Microeconomics and Property Market"

Download file to see previous pages The property market is basically the system by which land and buildings are bought and sold. There is no central institution for this market, which works through an informal network of estate agents and other specialized intermediaries. The property market is extremely imperfect, as every property is different in location, and properties in close proximity differ in several characteristics. These include the type of buildings on them and their condition; access to transport facilities; and amenity aspects, such as proximity to either source of pollution such as rubbish dumps or sources of pleasure such as parks. Also, most individuals move fairly seldom, owing to the high costs of movement, and firms move even more seldom. Thus most buyers and sellers have little recent experience of the market, and most properties are not available to be traded at any point in time. Property prices are thus subject to large fluctuations (Black, 2002). As there are several fluctuations involved in the property market, it is important to use some sort of a system to predict these changes in prices, supply and demand. That’s exactly the point where microeconomics lends a helping hand.
Here, it is worth mentioning that when people speak of the real estate economy, they are using nationally-based statistics. For example, Fortune magazine reported recently that since the early 1960s, average residential real estate values have never had a down year. This statement is true. But while these numbers are measurable, they do not reflect the intricacies of local real estate markets. The stock market is based on the national, even the world economy. The real estate market is based on local, and, in many cases, micro-local economies. Whats happening in Los Angeles does not directly affect whats happening in Toledo (Bronchick).  ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Not Found (#404) - StudentShare”, n.d.)
Not Found (#404) - StudentShare. Retrieved from
(Not Found (#404) - StudentShare)
Not Found (#404) - StudentShare.
“Not Found (#404) - StudentShare”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Microeconomics and Property Market

Microeconomics and Market Systems

...? Microeconomics and Market Systems This assignment is an exercise in the concept of elasti The example presented is about a painter who uses 35 gallons of paint when the price of one gallon of paint is $3.00. However, when the price of a gallon of paint increased to $3.50, his usage decreased to 20 gallons. The exercise aims to introduce the concept of elasticity by illustrating how the demand for a product will decrease if the price is increased. In the example, one observes that the demand for paint is elastic because it is sensitive to price changes. This is clearly shown when the price elasticity of demand was computed and resulted in a value greater than one. Microeconomics and...
3 Pages(750 words)Assignment

Market Failures in Microeconomics

...Factors of Market Failures in Microeconomics The term economics stems from the Ancient Greek (oikonomia - management and administration of a household) from (oikos - house) + (nomos - custom or law), meaning the rules of the household. Economics is the social science that examines the production, allocation, and utilization of goods and services. There are two main branches of economics, macroeconomics and microeconomics. While macroeconomics is the study of the national or the regional economy as a whole. Microeconomics is the behavioral study of individual consumers and firms in the market in order understand their decision making process. This is...
6 Pages(1500 words)Essay

Australian Property Market

...Impact of Interest Rates on the Demand for Residential Properties in the Australian Property Market The Australian property market provides a good long term investment for one who is investing in the house properties, by virtue of the escalation of prices over the period. Even when the market conditions show a declining trend, the investment is sure to result in a profit for the investor. During the current period there has been an all round in the economy of Australia which contributes for the improvement in the property prices. Another factor that has given a favourable outlook for the...
14 Pages(3500 words)Essay

Property Market

...PROPERTY MARKET Real e business is a hugely profit making business. It is one of the booming businesses that have given fruitful results to those who invested to gain profits. A real estate business can give good results if the infrastructure of concerned city, town or village is good. Basic facilities like water, electricity, food and shelter should be sufficient. Real estates prices will increase when the land is in the center of the city, or in industrial areas, or in residential areas. Infrastructure of the city or town plays an important role because those are the basic amenities that an investor would look into, before buying the land. Lack of infrastructure and basic facilities would lead to downfall in prices of the land... and...
2 Pages(500 words)Essay

Real Property Market

...Real Property Market The real property market fosters economic growth and long-term development and fosters environmental development in an urban and local setting. Landowners have been willing to work closely with local, state, and Federal officials to plan projects in a way that preserves large amounts of valuable contiguous habitat. This example of leadership from the real estate industry involved an economic benefit which is the ability of communities and landowners to engage in long-term planning for economic development. (Rising, 2001) The real estate companies advanced an environmental objective advocated by the Environmental Defense which meant a broader...
8 Pages(2000 words)Assignment

Microeconomics issue-airline market

...Airlines have recently imposed heavy fees on people who do not show up for their flight as a result of Illness, emergencies or any other reason. These fees are charged before the amount is refunded to the consumers. Many airlines, as a result, are earning huge revenues just from ticket cancellation. In the last few years, these fees have even out shadowed the revenue that was being earned by these airlines from heavy baggage that consumers carried to the airlines. The revenue earned by AMR, was $116 Million, as compared to the revenue earned from baggage which was only $108 Million. However, these airlines can justify their imposition of penalties in the terms of microeconomics. These fees, according to a source in the...
3 Pages(750 words)Essay

Microeconomics and property market

...Microeconomics and property market Table of Contents 3 Introduction 4 The property market 5 Tangible Property (Assets) 6 Intangible Property(Assets) 9 Conclusion 10 Limitations 11 Recommendations 12 Reference 12 Bibliography 12 Abstract Property market has become one of the most vulnerable of all market types in the world today. The main reason behind this might seem to be the bursting of the recent house-price bubble. However, property comprises of both tangible and intangible assets, and thus the influence from only the housing market cannot act as the only source of disturbance in this regard. The present paper tries to find out the other components in the property market and how an external disturbance can lead to a change... . In order...
7 Pages(1750 words)Term Paper

What Causes Market Inefficiency (microeconomics)

...Market Inefficiency: The Externality Problem [ID Market inefficiencies are a major part of economic theory. Clearly, markets do not always work ideally: We have had the Great Depression, ecological destruction, etc. So what causes market inefficiencies? There are many factors such as incomplete information, irrational behavior, and so forth, but externalities are one of the most serious. Market failures are defined by Investor Words as “A condition in which current prices do not reflect all the publicly available information about a security, such as when some individuals get certain information before others, or when some individuals do not properly analyze the available information”. Market failures, like most market functions... , are...
2 Pages(500 words)Assignment

Property Market Analysis

...PROPERTY MARKET ANALYSIS Introduction Property market involves real e s, which are properties that consist of land, as wellas building (Abdul 2002). In addition, it also involves natural resources including minerals, crops and water. Property market also entails the profession of buying, renting or selling buildings and lands (Abdul 2002). With the increase in the development of private ownership of property in many parts all over the world, property market has become one of the major areas of business (Abdul 2002). Purchasing a land as well as a building is a significant...
6 Pages(1500 words)Essay

Microeconomics - The Property Markets

.... The people were now unable to pay for the properties and most of them were also subject to the prepayment penalties. The only hope out of this situation was to be able to move out before any more money was lost (Shurick and Weir). Assistance to Home Owners: With the major decline in the markets, the home owners were the most effected and along – side the entire economy was seeing a major decline. The government then needed to step in and bail people out of the issue. It was here that the government agencies took steps and initiatives to help the people who were directly affected and were in the lending mess. A number of different programs were set up and aid was provided to the home owners in need....
6 Pages(1500 words)Term Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Assignment on topic Microeconomics and Property Market for FREE!

Contact Us