Xeco 219 Final Project--a New House Decision Essay

2028 WordsDec 11, 20109 Pages
A New House Decision Karen Taylor XECO 212 October 17, 2010 Nicholas Kuzmich New House Decision The decision to buy a home is a very big and important step and should be entered into very carefully. Home buying is the most important decision that a couple or person will ever make in their lives. With a new baby coming, the studio apartment is going to be too small for a family of 3 to live in and also the apartment being too far from local services and schools, all of these factors that have come into play have played an important part for the decision in buying a home. With the bad situation of the housing market, at this time will also play an important role in deciding to buy a house. Many people will decide on looking to…show more content…
Making yourself aware of the neighborhood and its growth, studying when the market peeks or if it is still growing, and studying the areas general financial foundation of the city, are all important things you need to be aware of when buying a house. According to Mankiw, "In any market, buyers look at the price when determining how much to demand, and sellers look at the price when deciding how much to supply. As a result of the decisions that buyers and sellers make, market prices reflect both the value of a good to society and the cost to society of making the good." This is one of the principles of economics that can quickly affect the profit of this investment. The ninth principle of economies also applies which is "Prices Rise When the Government Prints Too Much Money" which is prices increase when the government prints too much money. Everyone would assume that it would cause more riches, but also would assume that it does the complete opposite by causing the hardship of the entire economy. Lastly, the tenth principle would apply which is "Society Faces a Short-Run Trade-Off between Inflation and Unemployment." When buying a house the new homeowner should consider doing it during the high employment time, and right now in today's society the unemployment rate is constantly on the rise along which is making it hard for anyone to depend on their income,

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