At the beginning of the year, many homeowners are feeling the first effects of the downturn in the housing market, and are beginning to think about their budgeting and planning for the coming year.
After the year is over, many people are thinking about their next year’s home payment and then how they’ll be able to afford to buy a home with the money they’ve saved during the current year.
This is what we call the “shifts in the aggregate demand curve.” Our model, which uses the Bureau of Labor Statistics (BLS) Consumer Price Index for All Urban Consumers (CPI-U) to explain this, shows that when the price of a home goes up, demand for homes goes down, while when the price of a home goes down, demand for homes goes up.
As a result of this, a typical person who has saved a lot of money this year will not be able to borrow enough to buy a house as the value of the home drops, while someone who has saved a lot of money this year will be able to buy a house as the price of the home rises.
Because of this, we have a tendency to think of money as either “good” or “bad” for us. The fact is that there are good and bad seasons in the housing market, and the good ones help to keep prices up. For example, in January, when the market was in the middle of a recession, we had a huge increase in demand for homes. This was due to the fact that many people had their monthly mortgage payments cut and saved a lot of money.
Now, on the other hand, when the market is in the mid cycle, there are typically no or very low mortgage payments. This means that you can spend a lot of money on a house and not worry that there’s going to be a jump in demand next month.
In fact, there is some evidence that a lack of foreclosures can cause the supply of homes to decline. For instance, in 2010, there were only 5,000 foreclosure listings in the U.S. compared to 13,000 in 2008. On the other hand, there was an increase in sales of previously owned homes. When there are more people buying homes, they are more prone to selling them. The net effect is that the amount of homes in the U.S.
is more likely to drop than it is to rise. To see that, go to google.com and type in “foreclosure sales” and you should be able to find the current chart. Note that the red line that is running there is the aggregate demand curve. If the supply of homes goes down and the demand goes up, the aggregate demand curve will move to the left or down.
The aggregate demand curve has a lot of interesting features. When it is flat, the demand curve is pretty much flat. When it is rising, it is much more volatile, and therefore has a lot of fluctuation. In the case of our new home, it is running up and down quite a bit, so I think it is pretty clear that there is a lot of fluctuation in the aggregate demand curve in general.
This is one of the reasons that the aggregate demand curve is so important. If you’re trying to sell a home, you can’t just rely on a flat aggregate demand curve. If the aggregate demand curve is moving up and down, it means that there is more competition for a particular home. It means that there is more demand for that home. It means that the price is going up.
