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Then finally, we will look at the monetary and fiscal policies that affect the housing industry. With the information we will have a better understanding of how the home building industry is affected.
When looking at prices within an industry, we need to first look at the supply and demand. For home builders this market has been fluctuating for awhile. The gross domestic product (GDP) is one of the primary indicators that show how the economy is doing. For the home building industry in the final quarter of 2007 the Residential Fixed Investment was at 24%, which is more than a percentage point from the GDP growth rate (Seiders, 2008)...
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