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