• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

With reference to specific examples, what determines the price of a house?

Extracts from this document...


GCSE Economics Coursework With reference to specific examples, what determines the price of a house? By Tom Nixon 11BD In this economics, I will be explaining what determines the price of a house with reference to: * Demand and supply; * Size, facilities and age of a house; * Local location and the surrounding area, and; * Cities, suburbs and the country Introduction Demand is the willingness and ability to buy a good or service at any given price. At price p, the quantity bought is q. However, if price increases from p to p1, the quantity sold decreases from q to q1. However, if the price falls from p to p1, then the quantity demanded will increase from q to q1 Supply is the willingness and ability to sell a good or service at any given price. At price p, quantity q is sold. If price increases from p to p1 then quantity supplied also increases from q to q1. If price falls though, from p to p1, then the quantity supplied will also decrease from q to q1 as suppliers are more willing to sell products at a higher price. ...read more.


An example of an area like this would be London. I predict that houses in ideal locations will be more expensive than houses near to undesirable features, for example airports, as there is low demand for houses near to them, therefore we can assume that the price will be relatively low also. Size, Facilities and Age Of A House Below is a table of house prices for different types of houses with different facilities in Caterham. The average price for a dwelling in Caterham is in the region of �235, 000 - �245, 000. Type Of House Price Split level maisonette �122,500 Split level apartment �165,00 3 bedroom terraced �227, 500 3 bedroom semi-detached �250,00 3 bedroom converted townhouse �334,950 5 bedroom detached �499,950 As we can see, as the facilities and the size of the houses increase, so does the price. This is because a five bedroom detached house costs more to build and also it is a luxury to have a very big house therefore if it was very cheap people may question the quality. ...read more.


Thus people will wait a while before buying when the mortgage rates are low. Then they think that they can afford more and buy bigger houses which lead to rising house prices and a spiralling economy. Conclusions From the explanation, I think that the biggest factor in determining the price of a house overall is mortgage rates. If demand is high for housing, then the price should be low, according to the demand curve. However, if mortgage rates are high then demand is low and vice versa. I did not predict that mortgage rates would be the main factor in determining the price of a house but I think that my conclusions have matched my hypothesis to a certain extent because the location of a house will not determine its price if you look at it from the wider picture. However, when you look at house prices in specific areas, then the location becomes a main factor. I believe my evidence and material that I used to be quite reliable. Although my evidence for house prices in Caterham were not averages so anyone of the prices could be an anomaly but the prices reflected what I had previously predicted. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Marketing & Research section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Marketing & Research essays

  1. Marketing Aims and Objectives - with examples from major companies.

    The promotional mix includes: Advertisements - these are messages sent via the media with the aim to influence and inform the audience. Direct mail - types of advertisements which are personally addressed and sent through the mail, to inform and advertise. Public Relations - non personal communications using the media.

  2. unit 2 recruitment in the work place

    * Passive: A passive manager gives enough time / freedom to their staff to finish their work, does not involve much with the work. Good points are; freedom enough time, bad points for the business; not enough work is getting done.

  1. Marketing analysis of a London tourist attraction - Somerset House.

    The richness of the Georgian period is reflected in a range of merchandise available in the courtauld shop, inspired by works in the exhibition and by the ornate ceiling in the original Royal Academy Meeting room. Jewellery, ornaments, silver and ceramics, many specially commissioned, are all to be found at the Gilbert collection shop.

  2. Applied Business Studies

    The reason that they are important is because the way they can control, and sway the business into certain things. The aim of all pressure groups is to influence the people who actually have the power to make decisions. Often pressure groups find themselves competing with rival pressure groups with

  1. SunCity - developing marketing strategy for problem

    their services, products and special offers, and if they stick to them. I will then relate the research to the problem and see of there is any correlation between the amount spent and the amount of customers Sun City currently has.

  2. Business Enterprise unit 5

    a car wash service, but having some local knowledge on car wash will benefit the business, for example where to purchase affordable and cheap car wash products. Knowing about different car wash products would also be beneficial. However on the other hand I must bear in mind that I may

  1. Applied Business Unit 2 Coursework

    I think that because this will be a very popular job role amoung younger citizens and students in the university because it is similar to work they have probably done in the past, I think that I would be better if I only advertise locally.

  2. Oil price and demand

    Opec agreed to lift production in June and the 44-year-old cartel is pumping about 30m barrels daily, volumes not seen since 1979. Saudi Arabia, the Worlds biggest oil producer and by far the biggest oil exporter is the only Opec country with any leeway to increase production and it traditionally favours lower prices.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work