Supply and demand is never an easy thing to measure in the real estate market. That’s partly due because it takes a long time to construct new homes and fix up old ones to put back onto the market. Similarly, real estate is not like other industries in that it takes a lot of time to buy and sell homes and other properties. Some of the factors that influence housing demand include lower interest rates or borrowing costs. When interest rates are low, people are generally willing to take on more debt. They may be able to finance the purchase of a home because the amount of interest they have to pay isn’t burdensome. If more buyers flood the market, the demand for housing increases. And if there’s a limited supply of housing inventory, that makes people in a low interest rate environment want to purchase even more.

The law of supply and demand is a theory and may be explained as that the particular interaction between the sellers of a resource and the buyers for that resource. Furthermore, this theory defines the relationship between the price of a given good or product and the willingness of people to either buy or sell it. Basically, the theory is made of two separate laws, one is the law of demand, and the other is the law of supply.  In the field of Real Estate supply and demand is never an easy thing to measure because it takes a long time to construct new homes and fix up old ones to put back onto the market. Similarly, real estate is not like other industries in that it takes a lot of time to buy and sell homes and other properties.