Case Study Paper Essay Example | Topics and Well Written Essays - 500 words

Case Study Paper - Essay ExampleThe news is a catastrophic resultant for the unemployed persons in the country, particularly for those who are living in their own house and progress to gone jobless for last few months or much and are unable to pay on their mortgages. Alan from Wall Street Journal reports, About 3.6 million homes are likely to be lost to a foreclosure or distressed sale by 2013, on top of 6.7 million since 2006, according to Moodys Analytics. This is really a grim situation in the sense that it is likely to tally a doom to all real estate owners. Why? In a free market, economic principles apply in its full force. One much(prenominal) law is demand and supply. Price remains in equilibrium when supply matches demand. Here the scenario is different. There is huge supply and very little demand. Sources say that the unornamented line of descent of housing units for sale or on rent is estimated to be 1.2 million units at the end of 2010. (Fig 1 Berg, Robert 2010). Ho using stock is stated to have aggregate demand of 0.3 million units per year in the country. Simply these figures indicate that there is already a huge build up in the inventory over the demand.