Home › Forums › Housing › San Diego Home Sales about to be revised downward BIGTIME (89% to 6.5% increase in May)
- This topic has 335 replies, 20 voices, and was last updated 14 years, 11 months ago by
capeman.
-
AuthorPosts
-
July 1, 2009 at 9:45 AM #423910July 1, 2009 at 9:46 AM #423174
sdrealtor
ParticipantWell said FSD
July 1, 2009 at 9:46 AM #423405ParticipantWell said FSD
July 1, 2009 at 9:46 AM #423682ParticipantWell said FSD
July 1, 2009 at 9:46 AM #423751ParticipantWell said FSD
July 1, 2009 at 9:46 AM #423915ParticipantWell said FSD
July 1, 2009 at 10:25 AM #423234Anonymous
Guest[quote=sdrealtor]In a perfectly competitive unrestrained unmanipulated market that may be true. This isnt close to one…….[/quote]
That doesn’t matter. The principles always apply.
There are an infinite number of influences on the shape and position of the supply and demand curves at any point in time. Government policy influences the supply and demand functions, sometimes in a big way. But it does not change the fundamental model.
“Manipulation”, such as government caps on prices, just change the parameters to the functions. These will change the shape or position of the curves, perhaps in unusual ways. But manipulations do not change how the curves are interpreted.
It is true that the Econ 101 models assume perfect competition, which is never the case in any market. However, most markets have an enough participants that the assumption of perfect competition is reasonable. The real estate market in San Diego has plenty of buyers and sellers, so the principles of Econ 101 still apply.
July 1, 2009 at 10:25 AM #423464Guest[quote=sdrealtor]In a perfectly competitive unrestrained unmanipulated market that may be true. This isnt close to one…….[/quote]
That doesn’t matter. The principles always apply.
There are an infinite number of influences on the shape and position of the supply and demand curves at any point in time. Government policy influences the supply and demand functions, sometimes in a big way. But it does not change the fundamental model.
“Manipulation”, such as government caps on prices, just change the parameters to the functions. These will change the shape or position of the curves, perhaps in unusual ways. But manipulations do not change how the curves are interpreted.
It is true that the Econ 101 models assume perfect competition, which is never the case in any market. However, most markets have an enough participants that the assumption of perfect competition is reasonable. The real estate market in San Diego has plenty of buyers and sellers, so the principles of Econ 101 still apply.
July 1, 2009 at 10:25 AM #423742Guest[quote=sdrealtor]In a perfectly competitive unrestrained unmanipulated market that may be true. This isnt close to one…….[/quote]
That doesn’t matter. The principles always apply.
There are an infinite number of influences on the shape and position of the supply and demand curves at any point in time. Government policy influences the supply and demand functions, sometimes in a big way. But it does not change the fundamental model.
“Manipulation”, such as government caps on prices, just change the parameters to the functions. These will change the shape or position of the curves, perhaps in unusual ways. But manipulations do not change how the curves are interpreted.
It is true that the Econ 101 models assume perfect competition, which is never the case in any market. However, most markets have an enough participants that the assumption of perfect competition is reasonable. The real estate market in San Diego has plenty of buyers and sellers, so the principles of Econ 101 still apply.
July 1, 2009 at 10:25 AM #423811Guest[quote=sdrealtor]In a perfectly competitive unrestrained unmanipulated market that may be true. This isnt close to one…….[/quote]
That doesn’t matter. The principles always apply.
There are an infinite number of influences on the shape and position of the supply and demand curves at any point in time. Government policy influences the supply and demand functions, sometimes in a big way. But it does not change the fundamental model.
“Manipulation”, such as government caps on prices, just change the parameters to the functions. These will change the shape or position of the curves, perhaps in unusual ways. But manipulations do not change how the curves are interpreted.
It is true that the Econ 101 models assume perfect competition, which is never the case in any market. However, most markets have an enough participants that the assumption of perfect competition is reasonable. The real estate market in San Diego has plenty of buyers and sellers, so the principles of Econ 101 still apply.
July 1, 2009 at 10:25 AM #423975Guest[quote=sdrealtor]In a perfectly competitive unrestrained unmanipulated market that may be true. This isnt close to one…….[/quote]
That doesn’t matter. The principles always apply.
There are an infinite number of influences on the shape and position of the supply and demand curves at any point in time. Government policy influences the supply and demand functions, sometimes in a big way. But it does not change the fundamental model.
“Manipulation”, such as government caps on prices, just change the parameters to the functions. These will change the shape or position of the curves, perhaps in unusual ways. But manipulations do not change how the curves are interpreted.
It is true that the Econ 101 models assume perfect competition, which is never the case in any market. However, most markets have an enough participants that the assumption of perfect competition is reasonable. The real estate market in San Diego has plenty of buyers and sellers, so the principles of Econ 101 still apply.
July 1, 2009 at 2:05 PM #423409ParticipantEnjoy the view from your Ivory Tower. I had a short sale property that was approved. Two weeks before closing buyer gets weak kneed and cancels. Property goes back on market and several offers roll in. I could sell this house 10 times or more at the approved price to the buyers out there that want it but only have one house to sell. At a higher price they wouldnt be there.
Break out the text book and explain that situation.
July 1, 2009 at 2:05 PM #423640ParticipantEnjoy the view from your Ivory Tower. I had a short sale property that was approved. Two weeks before closing buyer gets weak kneed and cancels. Property goes back on market and several offers roll in. I could sell this house 10 times or more at the approved price to the buyers out there that want it but only have one house to sell. At a higher price they wouldnt be there.
Break out the text book and explain that situation.
July 1, 2009 at 2:05 PM #423918ParticipantEnjoy the view from your Ivory Tower. I had a short sale property that was approved. Two weeks before closing buyer gets weak kneed and cancels. Property goes back on market and several offers roll in. I could sell this house 10 times or more at the approved price to the buyers out there that want it but only have one house to sell. At a higher price they wouldnt be there.
Break out the text book and explain that situation.
July 1, 2009 at 2:05 PM #423987ParticipantEnjoy the view from your Ivory Tower. I had a short sale property that was approved. Two weeks before closing buyer gets weak kneed and cancels. Property goes back on market and several offers roll in. I could sell this house 10 times or more at the approved price to the buyers out there that want it but only have one house to sell. At a higher price they wouldnt be there.
Break out the text book and explain that situation.
-
AuthorPosts
- You must be logged in to reply to this topic.