No one can argue with the fact that buyers and sellers are responsible for setting, or at least influencing market price. This is true in many markets, including the real estate market. However, it’s also possible to have a situation where there are buyers and sellers but no influence on market price – this is called an “equilibrium.” This blog post will explore equilibrium theory as it applies to the real estate market.
We’ll discuss how this type of marketplace works and what factors affect its outcome. People who are sellers in the market have a lot of power to set prices. If they hold out for higher prices, buyers will be forced into other markets or wait until sellers lower their price. Buyers also have some degree of control over what they’re willing to pay; if they don’t want an item at the current price, then it’s possible that another buyer does and is willing to make a purchase with those terms.
The equilibrium point lies somewhere between what buyers are willing to spend and how much people on the opposite side are trying to sell it for – but since there can be no transactions without both parties agreeing on some kind of offer, this factor has too little effect overall because there isn’t enough data available about these subjects.