Write an essay on the topic: "Are real estate prices predictable: Determinants of transaction prices and time on the market." In preparing your essay, address the following questions:
1. What are the main characteristics of perfectly competitive markets? Do housing markets share these characteristics? (see Campbell, Giglio, and Pathak 2011, available in the Learning Materials folder; scroll down to the bottom)
2. Explain the determinants of supply and demand of real estate properties. Are real estate prices predictable? What are typical causes of bubbles on real estate markets? 3. What are the factors determining how long a property stays on the market? Address general market conditions as well as microeconomics factors affecting buyers’ and sellers’ decisions.