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This wall will give you some information about housing market through websites, videos and images. The Housing Market is about the supply and demand for houses in a particular country or region, it represents the market for properties being purchased and sold directly to buyers or through real estate brokers.

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Website #1 Definition of the housing market

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Website #1 Definition of the housing market

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This website gives an overview of what is housing market. It shows features of housing market, factors which affect the housing market, homeownership rates and affordability of housing. It sets the housing market in United Kingdom as an example to explain.

The website lists factors that affect the housing market, which is the most important point when people talking about housing market. From that I learn that affordability of housing and availability of mortgages are factors can have effects on the market. The given line graphs in this website show the statistics of housing market within the past 30 years in UK, which clearly explain the contents.

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The Housing Market refers to the supply and demand for houses, usually in a particular country or region. A key element of the housing market is the average house prices and trend in house prices.

Definitions related to housing market

UK nominal house prices - actually monetary value - not adjusted for inflation

Real house prices - house prices adjusted for inflation, e.g. if prices rise 10%, but inflation was 2%, then real house prices rose 8%

Mortgage equity withdrawal - when homeowners re-mortgage house and take equity withdrawal.

Affordability index - how much percentage of disposable income is needed to keep up with mortgage payments - rents.

Buy to let - When investors buy houses with the intention of renting out the house to gain income from rent and hopefully capital gains.

Capital gains - when investors see a rise in house prices

Negative equity - when a homeowner has an outstanding mortgage bigger than the value of the home. If they sold their house, they would still owe money from the initial mortgage

Interest only mortgage - when homeowners take out a mortgage which only involves paying the interest on the loan and not any principle on reducing the outstanding loan.

Real interest rates - nominal base rates - inflation rate

Base rates - the interest rate set by the Bank of England; this base rate has a strong influence on the other interest rates in the economy. Banks will usually alter their lending rates in response to a change in the base rate.

Real house prices 1975 - 2015

The Housing Market includes the following features

Supply of housing - quantity of housing stock

Demand for housing

House prices

Rented sector. Buy to let investment and demand from tenants

Government intervention in the Housing market

Factors which affect the Housing Market

Interest rates - which influence cost of variable mortgages

State of mortgage industry - determines whether people are eligible for mortgages

Economic growth, incomes and unemployment rates

Population and demographic trends

Features of UK Housing Market

The UK Housing Market is often volatile because of various factors.

The UK Housing market has an influence on the wider economy. e.g. when house prices are falling, consumer spending tends to decrease.

Because the housing market influences the economy and individual homeowners, it is important to try and be able to predict future movements in the housing market.

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Definition of the housing market - Economics Help

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The Housing Market refers to the supply and demand for houses, usually in a particular country or region. A key element of the housing market is the average house prices and trend in house prices. UK nominal house prices - actually monetary value - not adjusted for inflation Real house prices - house prices adjusted for inflation, e.g.

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Website #2 How does the law of supply and demand affect the housing market?

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Website #2 How does the law of supply and demand affect the housing market?

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This website fairly explains how supply and demand affect housing market. Housing market is a good example of how supply and demand work in economics. When the demand for housing is high, but supply is low, home prices often rise. When there is a large amount of housing available in a market, the home prices will be lowered due to less demand in the market. It also shows factors affecting housing supply and demand, such as lower interest rates, new home construction, natural disasters, etc.

This year is an example that how natural disasters and unpredictable pandemic affect housing market, such as bushfires in Australia and COVID-19 all over the world.

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The law of supply and demand is a basic economic principle that explains the relationship between supply and demand for a good or service and how the interaction affects the price of that good or service. The relationship of supply and demand affects the housing market and the price of a house.

The law of supply and demand states when there is high demand for a good or service, the price of the good or service rises. If there is a large supply of a good or service but not enough demand for it, the price falls.

In the housing market, the law of supply and demand is prominent. Generally, each housing transaction involves a buyer and a seller. The buyer places an offer for a property and the seller may accept or reject the offer. The law of supply and demand dictates the equilibrium price of a property.

When there is a high demand for properties in a particular city or state and a lack of supply of quality properties, the prices of houses tend to rise. When there is no demand for housing due to a weak economy and an oversupply of properties is available, the prices of houses tend to fall.

For example, during the Great Recession, the United States experienced an economic downturn from December 2007 until June 2009. The collapse of the real estate market in 2007 caused a decrease in demand for properties, thus creating an oversupply of houses and decreasing properties prices.

(For related reading, see: The Real Estate Market's Supply and Demand Dilemma.)

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How does the law of supply and demand affect the housing market?

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The law of supply and demand is a basic economic principle that explains the relationship between supply and demand for a good or service and how the interaction affects the price of that good or service. The relationship of supply and demand affects the housing market and the price of a house.

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Website #3 Canada Real Estate Market Overview

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Website #3 Canada Real Estate Market Overview

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This website is an overview of Canada Real Estate Market for all property types, housing market reports across Canada are given. From the statistics provided on the website, we can see the comparisons between this September and last year in transactions, average sold price and MLS home price index these three categories.

This website explains what is Residential Property Price Index (RPPI) and gives out line graphs for us to see the increase RPPI value year over year, it also illustrates RPPI values on all property types. And from the website I know what is New Housing Price Index (NHPI) and numbers of real estate agents in Canada. Can you imagine there are over 130,000 real estate agents across all the provinces and territories.

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Canadian Housing Market Report Nov. 16th, 2023 | Interactive Map - WOWA.ca

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Home prices in Canada continue to rise at a steady pace, with the national average hitting $656,625 in October 2023. This represents a 2% year-over-year increase and a 0.2% month-over-month increase.

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Website #4 The downside of the hot 2020 housing market

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Website #4 The downside of the hot 2020 housing market

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This website is about the downside of the hot 2020 housing market in Canada. It describes what the housing market look like before the COVID-19 came, and the current circumstance. Before the pandemic, demand for housing was strong in the beginning of 2020. Due to the COVID-19, the lock-down temporarily immobilized the housing market. Then the housing demand was back to pre-COVID levels of growth, the frozen market was resumed, and it had steady growth after.

The website points out the unhealthy rate of housing price growth due to demographics and low mortgage rates. The author has the concern of the housing market in years 2020-2014, housing bubble probably would be a problem.

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Demand for housing was strong in early 2020, before the COVID-19 crisis hit. Mandated shut-down measures and the fear of what COVID would do to our economy temporarily immobilized the housing market, evinced by nine weeks of declines in the weekly purchase applications data on a year-over-year basis. Then it was as if the Housing Demographic God exerted her chronokinetic powers to snap demand back to pre-COVID levels of growth. The frozen market thawed and resumed its steady pace of growth, even making up for lost time.

Instead of a housing crash, as many others predicted would be the lasting consequence of shut-down policies and massive job losses across the nation, the opposite happened as the 2020 U.S. housing market has been the most out-performing economic sector in the world.

However, we now have another issue to worry about - that home prices will accelerate too quickly, unrestrained by an increase in mortgage rates. As you can see below, we have deviated from the normal price growth that had been the trend in recent years.

My biggest fear for the housing market in years 2020-2024 was never a lack of demand, as the housing bubble boys have been trolling about the last eight years - it was an unhealthy rate of price growth due to demographics and low mortgage rates.

When demographics are good for housing, meaning we have a large number of our populace at home-buying age, demand - and thus home prices - can be moderated by higher interest rates. We were witness to this in 2018 when mortgage rates increased to 4.75%-5%, demand fell and the rate of growth of real home prices went negative, year over year.

That was then and we can clearly see this isn't the case anymore.

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The downside of the hot 2020 housing market: rapid home-price growth

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Demand for housing was strong in early 2020, before the COVID-19 crisis hit. Mandated shut-down measures and the fear of what COVID would do to our economy temporarily immobilized the housing market, evinced by nine weeks of declines in the weekly purchase applications data on a year-over-year basis.

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The video in this website clearly tells us what real estate is. It let us know the real estate has three categories, residential, commercial and industrial. Residential includes houses, condominiums, townhouses and undeveloped land. Home ownership is the most common type in real estate. Commercial housing market includes office, warehouse and retail store buildings. It points out the difference between residential and commercial real estate. Industrial real estate includes factories and farms.

Even though this video is very short, it gives us an overview of housing market. It is not only about residential, but also includes commercial and industrial parts.

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What Is Real Estate?

Real estate is the land along with any permanent improvements attached to the land, whether natural or man-made-including water, trees, minerals, buildings, homes, fences, and bridges. Real estate is a form of real property. It differs from personal property, which are things not permanently attached to the land, such as vehicles, boats, jewelry, furniture, and farm equipment.

Understanding Real Estate

People often use the terms land, real estate, and real property interchangeably, but there are some subtle distinctions.

Landrefers to the earth's surface down to the center of the earth and upward to the airspace above, including the trees, minerals, and water.

Real estate is the land, plus any permanent man-made additions, such as houses and other buildings.

Real property-one of the two main classifications of property-is the interests, benefits and rights inherent in the ownership of real estate.

Broadly speaking, real estate includes the physical surface of the land, what lies above and below it, what is permanently attached to it, plus all the rights of ownership-including the right to possess, sell, lease, and enjoy the land.

Real property shouldn't be confused with personal property, which encompasses all property that doesn't fit the definition of real property. The primary characteristic of personal property is that it's movable. Examples include vehicles, boats, furniture, clothing, and smartphones.

Physical Characteristics of Real Estate

Land has three physical characteristics that differentiate it from other assets in the economy:

1. Immobility. While some parts of land are removable and the topography can be altered, the geographic location of any parcel of land can never be changed.

2. Indestructibility. Land is durable and indestructible (permanent).

3. Uniqueness. No two parcels of land can be exactly the same. Even though they may share similarities, every parcel differs geographically.

Economic Characteristics of Real Estate

Land also has some distinct economic characteristics that influence its value as an investment:

Scarcity: While land isn't considered rare, the total supply is fixed.

Improvements: Any additions or changes to the land or a building that affects the property's value is called an improvement. Improvements of a private nature (such as homes and fences) are referred to as improvements on the land. Improvements of a public nature (e.g., sidewalks and sewer systems) are called improvements to the land.

Permanence of investment: Once land is improved, the total capital and labor used to build the improvement represent a sizable fixed investment. Even though a building can be razed, improvements like drainage, electricity, water, and sewer systems tend to be permanent because they can't be removed (or replaced) economically.

Location or area preference. Location refers to people's choices and tastes regarding a given area, based on factors like convenience, reputation, and history. Location is one of the most important economic characteristics of land (thus the saying, "location, location, location!").

Types of Real Estate

There are five main types of real estate:

1. Residential real estate:Any property used for residential purposes. Examples include single-family homes, condos, cooperatives, duplexes, townhouses, and multifamily residences with fewer than five individual units.

2. Commercial real estate:Any property used exclusively for business purposes, such as apartment complexes, gas stations, grocery stores, hospitals, hotels, offices, parking facilities, restaurants, shopping centers, stores, and theaters.

3. Industrial real estate:Any property used for manufacturing, production, distribution, storage, and research and development. Examples include factories, power plants, and warehouses.

4. Land:Includes undeveloped property, vacant land, and agricultural land (farms, orchards, ranches, and timberland).

5. Special purpose:Property used by the public, such as cemeteries, government buildings, libraries, parks, places of worship, and schools.

How the Real Estate Industry Works

Despite the magnitude and complexity of the real estate market, many people tend to think the industry consists merely of brokers and salespeople. However, millions of people in fact earn a living through real estate, not only in sales but also in appraisals, property management, financing, construction, development, counseling, education, and several other fields.

Many professionals and businesses-including accountants, architects, banks, title insurance companies, surveyors, and lawyers-also depend on the real estate industry.

Real estate is a critical driver of economic growth in the U.S. In fact, housing starts -the number of new residential construction projects in any given month-released by the U.S. Census Bureau is a key economic indicator. The report includes building permits, housing starts, and housing completions data, divided into three different categories:﻿﻿

Single-family homes

Homes with 2-4 units

Multifamily buildings with five or more units, such as apartment complexes﻿﻿

Investors and analysts keep a close eye on housing starts because the numbers can provide a general sense of economic direction. Moreover, the types of new housing starts can give clues about how the economy is developing.

Example: Housing Starts

For example, if housing starts indicate fewer single-family and more multifamily starts, it could indicate an impending supply shortage for single-family homes-which could drive up home prices. The following chart shows 20 years of housing starts, from Jan. 1, 2000, to Feb. 1, 2020.﻿﻿

How to Invest in Real Estate

There are a number of ways to invest in real estate. Some of the most common ways to invest directly include:

If you buy physical property (e.g., rental properties, house flipping), you can make money two different ways: Revenue from rent or leases, and appreciation of the real estate's value. Unlike other investments, real estate is dramatically affected by its location. Factors such as employment rates, the local economy, crime rates, transportation facilities, school quality, municipal services, and property taxes can drive real estate prices up or down.

You can invest in real estate indirectly, as well. One of the most popular ways to do so is through a real estate investment trust (REIT) -a company that holds a portfolio of income-producing real estate. There are several broad types of REITs, including equity, mortgage, and hybrid REITs. REITs are further classified based on how their shares are bought and sold:

Publicly traded REITs

Public non-traded REITs

Private REITs

The most popular way to invest in a REIT is to buy shares that are publicly traded on an exchange. Since the shares trade like any other security traded on an exchange (think stocks), it makes REITs very liquid and transparent.

Like many stocks, you earn income from REITs through dividend payments and appreciation of the shares. In addition to individual REITs, you can also invest in real estate mutual funds and real estate exchange traded funds (ETFs).

Mortgage-Backed Securities

Another option for investing in real estate is via mortgage-backed securities (MBS). These received a lot of bad press due to the role they played in the mortgage meltdown that triggered a global financial crisis in 2007-08.﻿﻿ However, MBS are still in existence and traded.

The most accessible way for the average investor to buy into these products is via ETFs. Like all investments, these products carry a degree of risk. However, they may also offer portfolio diversification. Investors must investigate the holdings to ensure the funds specialize in investment-grade mortgage-backed securities, not the subprime variety that figured in the crisis.﻿﻿

MBS Examples

Two popular ETFs that give ordinary investors access to MBS include:

The Vanguard Mortgage-Backed Securities ETF (VMBS): This ETF tracks the Bloomberg Barclays U.S. MBS Float Adjusted Index, made up of federal agency-backed MBS that have minimum pools of $250 million and minimum maturity of one year.﻿﻿

The iShares MBS ETF (MBB): This ETF focuses on fixed-rate mortgage securities and tracks the Bloomberg Barclays U.S. MBS Index. Its holdings include bonds issued or guaranteed by government-sponsored enterprises such as Fannie Mae and Freddie Mac, so they are AAA-rated.﻿﻿

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Real estate is the land along with any permanent improvements attached to the land, whether natural or man-made-including water, trees, minerals, buildings, homes, fences, and bridges. Real estate is a form of real property. It differs from personal property, which are things not permanently attached to the land, such as vehicles, boats, jewelry, furniture, and farm equipment.

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The second video I am introducing to you is about will COVID-19 infect the housing market in Canada. It lays out that borrowing costs are very light due to the low interest rates, the reducing amount of people come to Canada, lifestyles changing among young generation, and some examples of other cities about city density. The guy in the video has optimistic attitude toward housing market in Canada.

I agree some points from him. In my opinion, I think everything will back to normal, people still need to buy home in the city. I do think COVID-19 have some effects on housing market, but in a long-term consideration, the housing market will back to normal.

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Will COVID-19 infect the housing market?

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The video in this website is about the difference between new construction and existence homes. In this video, the speaker tells us why people want to have a new home, there are several reasons behind it, such as they can participate into building a new house. And also, he let us know the benefits of buying an existing home. Price, move in time and location are main factors of consideration. Existing homes have lower price, people can move into the new home in a short time. In addition, existing homes usually have better neighbourhood and near schools.

In the end of the video, it shows there are only 10% of purchased housing in USA each year are new home. This gives us a clear concept of people’s choices on buying new homes or existing homes.

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What Are Existing Home Sales?

Existing home sales transaction data measure and report sales and prices of existing single-family homes, condos, and co-ops for the United States, and is broken down by region-West, Midwest, South, and Northeast.

This metric can be contrasted with new home sales and housing starts, which both track newly built homes rather than existing housing stock.

Understanding Existing Home Sales

The existing home sales report is released monthly by the National Association of Realtors (NAR) based on closed residential real estate transactions. It is a lagging indicator since people often make housing choices in response to a change in interest rates.

According to the National Association of Realtors (NAR), the reporting of most existing home sales transactions happens after the closing, and so does not consider pending sales still in contract. The majority of transactions usually involve a mortgage, which may take 30 to 60 days to close on. As a result, existing home sale data most likely includes contracts which were signed at least a month or two before the report is published.

Existing vs. New Home Sales

The U.S. Census Bureau collects and disseminates new home sales data. The bureau defines a new home sale as the signing of a home sales contract, or the acceptance of a deposit. Also, this information comes from new construction permits on the state-level. The house may be at any stage of the construction process.

This process includes those structures not yet started, those under construction, and completed structures. About 25% of the houses sell at the time of completion. The remaining 75% splits equally between those not yet started, and those under construction.

New sales and existing home sales data releases usually occur at around the same time each month. Given the difference in definition, new home sales lead existing home sales with regard to changes in the residential sales market by a month or two. For example, an existing home sale in January was probably signed 30 to 45 days earlier in November or December of the previous year. This lapse is due to the usual time it takes to finalize sale documentation and close a mortgage.

Sources of Home Data

Many different reports analyze the housing market in the United States. These various indicators look at several different aspects of the housing market and give insight into buyer activity and regional trends:

The NAR created a new monthly series in 2005 to overcome the lagging effect of existing home sales, called the Pending Home Sales Index (PHSI). Like new home sale data, the PHSI can be viewed as a precursor of burgeoning housing demand. The release of this report is during the first week of each month and it measures housing contract activity. The basis of the index is on signed real estate contracts for existing single-family homes, condominiums, and co-ops properties.

The Housing Affordability Index measures whether or not a typical family earns enough income to qualify for a mortgage loan on an average home at the national and regional levels based on the most recent monthly price and income data.

The REALTORS® Affordability Distribution Curve and Score measures housing affordability at different income percentiles for all active inventory on the market. For each state, the curve shows how many houses are affordable to households ranked by income. The score represents affordability for all different income percentiles within a single measure.

Metropolitan Median Home Prices and Affordability publishes statistics each quarter. Separate price reports reflect the sales prices of existing single-family homes, condominiums, and cooperative homes by metropolitan statistical area (MSA). A quarterly qualifying income report shows the income needed to qualify to purchase the median-priced existing single-family home in each metro area given a variety of down payment assumptions.

The County Median Home Prices and Monthly Mortgage Payment indicates median home values for 3,119 counties and county-equivalents in the United States. Its calculation comes from comparing the House Price Index growth from Federal Housing Financing Agency (FHFA) to the latest housing data from the American Community Survey. Home values represent the value of all homes instead of home sales.

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Existing home sales transaction data measure and report sales and prices of existing single-family homes, condos, and co-ops for the United States, and is broken down by region-West, Midwest, South, and Northeast. This metric can be contrasted with new home sales and housing starts, which both track newly built homes rather than existing housing stock.

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This video I introduce to you is about the when will the housing market crash. The speaker in the video says the reasons why the price of housing market is so high, low rates, high demand and low inventory. Purchase mortgage applications rise to highest level in 11 years. He also says the mortgage pressure, foreclosure and unemployment rates have effects on housing market. COVID-19 has affected to local business, lowering unemployment rate.

In the end of the video, he estimates the price of housing market will be corrected or steady back to normal within 12 to 24 months, if there’s no extreme bubble.

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When Will The Housing Market Crash? (Housing Bubble!)

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The first image shows the factors that have effects on house prices. It clearly lists possible factors that may cause the increasing or decreasing prices in housing market. It also shows the factors in two sides: demand side and supply side.

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The second image indicates the definition of housing market, it is also called "real estate". Actually, housing market is not only considering residential homes - condominiums and houses; commercial, such as retail buildings, and industrial (farm and factories) are also included.

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1. What did you learn about your topic that surprised you the most? 

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1. What did you learn about your topic that surprised you the most? 

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When I did research for this topic, I learned so many new things. It helps me to expand my horizon and broaden my perspective. Now I totally know what Housing Market is, the definition of housing market and what factors could affect it. I used to think housing market is all about residential and commercial, now I know industrial is a part of it. One thing surprised me is natural disaster and pandemic can have such a big effect on housing market.

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2. Provide a real-life example of how this topic is relevant or interesting for you.

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2. Provide a real-life example of how this topic is relevant or interesting for you.

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Housing is very important for many people; most people want to have a forever home with family members. I am willing to have my own property, when consider buying a house or condo, there are many factors need to think of. From this topic, I know most people will go for existing homes instead of buying new homes, this phenomenon will remind me to consider more factors when I make a decision.

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3.  If you could pass on your knowledge to a friend or family member, what do you think is the most important thing to pass on?

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3.  If you could pass on your knowledge to a friend or family member, what do you think is the most important thing to pass on?

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I think I will let them know that do not make a decision very quick when purchasing homes. I know some people will follow others to buy homes when they see the price of housing keeps increasing. We should always remember the factors that can affect housing prices, and we should consider personal situation. Now the housing market is hot, do not blindly be followers, do more research and then make a decision.