Housing Market Dynamics

Housing market dynamics refer to the interactions between supply and demand for homes. When demand increases (more buyers wanting homes) and supply remains the same or decreases (fewer homes available), prices typically rise. Conversely, if supply exceeds demand (more homes than buyers), prices tend to drop. Factors such as interest rates, economic conditions, and population growth influence these dynamics. Additionally, buyer preferences and government policies can impact the market. Understanding these elements helps explain fluctuations in home prices and the overall health of the housing market.