|House Prices Go Through the Roof|
|Subject||Elasticity of supply|
|Key Words||Prices, economy, population, market, inventory, buyers, real estate agents, appraisers|
House prices are rising throughout the U.S. The Tampa Bay area is no exception. The causes are the healthy economy and the growing population. The result is that homes are not on the market for long. The low inventory of homes then causes the price of houses to escalate. Buyers fear that if they do not buy now, they will not get the house they want later.
However, uncertainty surrounds house prices. Real estate agents are finding it difficult to help owners set house prices at the right level. Appraisers are having difficulties assessing whether buyers are paying the market price for houses. Buyers are paying top dollar for houses. There is concern that if the economy turns down, buyers could be left holding property that is worth less than they paid for it.
(Updated June 1, 2000)
|Source||Teresa Burney, "Market Madness," St. Petersburg Times, April 22, 2000.|
Return to the Elasticity
©1998-2001 South-Western College Publishing. All Rights Reserved webmaster | DISCLAIMER