The Real Estate Market

The real estate market is of great importance to the economy. Housing wealth accounts to approximately 50% of the whole economy, which makes it a very important market to understand. What happened after the crisis to the market? How did this affect the behaviour of the actors involved in the market? Literature review, and subsequently interviews, seems to point out that reservation prices are subject to most importantly supply and demand. There possibility that more factors play a role is prevalent, however, information did not seem to lead to any changes in the reservation prices. Furthermore, there are several factors that affect the reservation price, but are not affected by the crisis making them relatively constant with the intervention of the crisis.