Quote:
Originally Posted by Bill14564
The Developer was the cause of the spike in demand for housing that drove values up? The value of the house I sold in Md increased at the same time (good for me) so is the Developer to thank for that too?
The Developer seems to be building as quickly as possible to create a supply of houses to meet the demand. My basic economics lessons told me prices increase when supply is low, not when supply is high. Wouldn't values have increased even more if the Developer had slowed or stopped building?
And really, I believe the continued investment in county infrastructure, needed to support the additional homes being added by the Developer, is what necessitated the 25% increase in taxes a few years ago.
|
You missed a class, supply is only part of it, the other important part of economics is demand. The developer can’t force somebody to leave another state and buy here. The developer here has created an environment that people from all over the country want to get into which is causing high demand for housing and right now, the developer is building all these new homes to meet this demand.
If there was no demand but a large supply, you would see home prices going down.