Microeconomics and the Property Market

Paper Summary:

This paper discusses microeconomics as it relates to the property market, particularly in the realm of property ownership. The paper begins by defining microeconomics and property rights individually and then relates the two to each other. The paper then identifies constraints in housing market behavior and looks specifically at the housing market situation today in the United States.

Table of Contents:
Property Rights Overview
Microeconomics Overview
Microeconomic Aspects Of Property Ownership
Constraints In Housing Market Behavior Identified
Microeconomics In Today's Housing Market

From the Paper:

"Other factors include falling housing prices which are noted by Barber to have been "falling at a 16 percent annual rate..." and as well Barber relates that these prices are expected to continue their decline meaning that "homeowners will build little or not equity throughout he duration of plans like this...the study shows that under these plans, homeowners will get to keep their house, but will be paying 85 percent more than if they rented a similar property." (Barber, 2008) The potential for equity being accrued in the home with falling prices and subprime rates and ARMS with variable interest in the terms of the mortgage. The problem is that a likelihood exists that taxpayers will pay approximately $75,000 for "each homeowners who stays in their home." (Barber, 2008) Barber indicates that "particularly problematic" are the decline in prices in the housing market."

Sample of Sources Used:

• Barber, Alan (2008) Foreclosure Plans Benefit Banks, But Do Little for Homeowners 4 Mar 2008. Center for Economic and Policy Research. CEPR Online available at: http://www.cepr.net/index.php/press-releases/press-releases/foreclosure-plans-benefit-banks-but-do-little-for-homeowners/
• Beckwith, James P. Jr. (1981) Parks, Property Rights and the Possibilities of the Private Law. Cato Journal Vol. 1, No. 2 Fall 1981.
• Van Der Molen, Paul (2004) Some Microeconomic Aspects of Land Ownership. Developing Land Administration Systems. Some Microeconomic Aspects of Land Ownership. 3rd FIG Regional Conference, Jakarta, Indonesia. October 3-7, 2004.
• McConnell, Campbell R.; and Brue, Stanley L. (2005) Microeconomics: Principles, Problems and Policies. McGraw-Hill Professional 2005. Online available at: http://books.google.com/books?id=hObpeG6v1VsC&dq=microeconomics+the+property+market&source=gbs_summary_s&cad=0

More papers on Microeconomics and the Property Market:

• Argumentative Essay # 118780 : "Democracy and the Free Market"
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• Analytical Essay # 47023 : "The Principle of Microeconomics? and the Environment"

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