Question

The median single-family home sales price in New York City rose from $317,480 in 2000 (in 2016 dollars) to $495,000 in 2016.

Does this mean that housing prices in New York City rose by 56 percent between 2000 and 2016? Explain.

Offer three explanations for why the median sales price might have risen. (Please limit your answer to no more than ½ page.)

Answer 1

Increase in prices from 2000 - 2016 = [495000 - 317480]/ (317480)

Increase in prices from 2000 - 2016 = 0.5594

%Increase in prices from 2000 - 2016 = 55.9% app (56%)

Yes this mean that the percentage increase in the prices from 2000 - 2016 is 56%

The three explainations which I will be giving for the why the median sales price might have increased is

1) Consistent demand for houses may also increase the price of the house where large people wanted to buy houses.

2) Intrest rates may be low in that area where all the people are willing to take house loans to buy their own house

3) Demographics where buyers are willing to pay the house as they feel that it is a good place where they will be happy to live.

4) From all these years from 2000-2016 the incomes of people have gone high thus making the increase in livehood of people thus the price level may also increases