Lecture

Real Estate Market: Supply and Demand

Graph Chat

Chat with Graph Search

Ask any question about EPFL courses, lectures, exercises, research, news, etc. or try the example questions below.

DISCLAIMER: The Graph Chatbot is not programmed to provide explicit or categorical answers to your questions. Rather, it transforms your questions into API requests that are distributed across the various IT services officially administered by EPFL. Its purpose is solely to collect and recommend relevant references to content that you can explore to help you answer your questions.

Description

This lecture covers the fundamentals of the real estate market, focusing on the interaction between supply and demand. It explains how prices are determined based on the equilibrium between buyers and sellers, and the consequences of excess supply or demand. The instructor illustrates scenarios where prices lead to either surplus or shortage, affecting the behavior of property owners and potential buyers. Through the analysis of market dynamics, students learn how adjustments in prices impact the balance between supply and demand, ultimately influencing market stability.

In MOOC

Soil and Real Estate Economics II

An economics course that presupposes no formal economic knowledge other than that developed in the first modules of the first part of this course, Land and Property Economics I. In this second course (Economics of Land and Real Estate II), we will cover..: The developer's countdown and its influence on land prices The calculations of property developers in general Market supply and demand and how they determine and vary prices Differentiating land by urban location

Official source

Related concepts (32)

Economic equilibrium

In economics, economic equilibrium is a situation in which economic forces such as supply and demand are balanced and in the absence of external influences the (equilibrium) values of economic variables will not change. For example, in the standard text perfect competition, equilibrium occurs at the point at which quantity demanded and quantity supplied are equal. Market equilibrium in this case is a condition where a market price is established through competition such that the amount of goods or services sought by buyers is equal to the amount of goods or services produced by sellers.

General equilibrium theory

In economics, general equilibrium theory attempts to explain the behavior of supply, demand, and prices in a whole economy with several or many interacting markets, by seeking to prove that the interaction of demand and supply will result in an overall general equilibrium. General equilibrium theory contrasts with the theory of partial equilibrium, which analyzes a specific part of an economy while its other factors are held constant.

Competitive equilibrium

Competitive equilibrium (also called: Walrasian equilibrium) is a concept of economic equilibrium, introduced by Kenneth Arrow and Gérard Debreu in 1951, appropriate for the analysis of commodity markets with flexible prices and many traders, and serving as the benchmark of efficiency in economic analysis. It relies crucially on the assumption of a competitive environment where each trader decides upon a quantity that is so small compared to the total quantity traded in the market that their individual transactions have no influence on the prices.

Supply and demand

In microeconomics, supply and demand is an economic model of price determination in a market. It postulates that, holding all else equal, in a competitive market, the unit price for a particular good, or other traded item such as labor or liquid financial assets, will vary until it settles at a point where the quantity demanded (at the current price) will equal the quantity supplied (at the current price), resulting in an economic equilibrium for price and quantity transacted.

Property law

Property law is the area of law that governs the various forms of ownership in real property (land) and personal property. Property refers to legally protected claims to resources, such as land and personal property, including intellectual property. Property can be exchanged through contract law, and if property is violated, one could sue under tort law to protect it. The concept, idea or philosophy of property underlies all property law.

Related lectures (64)

Real Estate Market Dynamics

Explores real estate market dynamics, including supply, demand, equilibrium, and market disruptions.

Gasoline Demand Analysis: Case Studies and Elasticity

Analyzes gasoline demand in Switzerland, focusing on price changes and their effects on consumption.

Real Estate Markets: Properties and Construction MOOC: Soil and Real Estate Economics II

Explores real estate markets, property ownership, housing demand, rental markets, construction dynamics, and financial aspects.

Basics-3-Market-Part1-2024-02-26

Market Regulation: External Benefits and Subsidies