Thursday, November 09, 2006

Chaper 2-Growth Predicted for Commercial Real Estate As Residential Brethren Suffer Slowdown

Many of the real estate companies have been unscathed by the housing market slowdown. The market of corporations has services of real estate revenues and enough of offset growth in investment sales by the investors. With the low unemployment, the rent for offices space decrease, and people without jobs increases. The cause of unemployment is the result of slowdown of real estate market. If the rise of housing causes the economic to grow, the employment would increase.

Consumers will buy more of a product if the price is low and less of it if the price is high. When the price of a product increases, the less of the product can be purchased with the current level of incomes. When the price of a product increases, consumers may substitute another, cheaper, product for it. Consumer demand for a product is not likely to stay over time. The consumer makes the decision about which products will be offered for sale jointly. The factors that influence consumers demand are always changing such as the price of houses. As the population increase, the demand for most product increases. The effect of a change in any one of these factors is changing in time.


I believe that the price of a product will increase in the near future, consumer are likely to buy the product. With housing being important consumers item that is it, buyers were eager to purchase houses at the lowest possible price. The expectation of future prices has no influenced the gold and silver market and the stock markets. Rapidly rising prices led to the belief that prices would continue to rise. On the other hand, if people expect prices to be lower in the future, they will postpone purchase until a later date.


Link:
http://biz.yahoo.com/ap/061109/market_spotlight_real_estate_services.html?.v=2

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