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Houston Housing Prices
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ECONOMIC SYSTEMBYADAM BABIKERECNO224ASSIGNMENT UNIT# 1
American InterContinental University
Four cities west of the Mississippi River
City of Houston
City of new Orleans
City of phoenix
City of Seattle
Housing prices for a 3 bedroom and 2 bath condo or house in these four cities
City of Houston; the average house price is $175,000
City of phoenix; the average house price is $135,000
City of new Orleans; the average house price is $150,000
City of Seattle; the average house price is $ 359,200
City of Houston
Houston is fourth largest city in United States, Houston's economy has a broad industrial base in the energy, manufacturing, aeronautics, transportation, and health care sectors
City of Houston
Many reasons that make me take this decision to relocate in Houston;
Job Opportunities; Houston among fort cities in the nation that has less
effected in current recession.
Housing price; the housing prices in Houston is reasonable prices.
Climate and culture; Houston has a beautiful weather specially in
Winter, Houston is most divers city in the United States, I enjoy living among different kind of people.
Housing Price & location
Housing prices affected from different factors;
1/ Supply and Demand; Housing prices are determined by economic forces
of supply and demand, when the demand of houses in city exceeded the
available demand then the price will go up, but if the development of the city
occur rapidly then the price will goes down.
2/ Median Income; Residents in a city can only afford as much as they
earn in their local job, the economic health of a city, particularly as measured
by median incomes, has a direct effect on housing prices.
Housing Price & location
Desirability; even in Houston metropolitan area, housing price are
vary from zip code to zip code based on a less tangible quality than
income level, simply, some geographical place are more desirable
than others. Down town Houston are more desirable than southwest
City, simply because most of big companies headquarter in down
town area.
Supply and demand affect the price of the homes
Home prices are affected by Supply and Demand in many ways;
1/ the availability of the houses, when supply are available and most of people
can afford to pay the mortgage then housing price will be stable or low. This
dependent on type of city, for example, we can’t compare Houston with district of Colombia, the price in district of Colombia are very high comparing with Houston metropolitan area. These largely depend on the job that offer in
district of Colombia are most time Federal jobs. Houston city more industrial
city.
Supply and demand affect the price of the homes
2/ Shortage of houses; if demand of Houses higher than
supply then the house price will goes up, However, in city such as Houston which is growing rapidly the house price
affected the recession like most of US. Cities.
3/ economic vitality of the city; that include job
opportunity and availability of the land for development
Supply and demand affect the price of the homes
When demand for both new and older housing is weak and when there is a glut of properties available on the market, then the power switches to potential buyers. They have a much wider choice of housing available and they should be able to negotiate a price that is lower than the published price
References
http://tutor2u.net/economics/content/topics/housing/housing_demand_supply.htm
http://www.theroot.com/blogs/recession/forty-cities-not-bad-rest-countryWhy Do Housing Prices Vary From City to City? | eHow.com http://www.ehow.com/how-does_6168085_do-prices-vary-city-city_.html#ixzz12fNJy8h8
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