Answered

Which tends to result in a decrease in the selling price of houses in an area?

A. Increase in mortgage interest rates
B. Increase in the income of new residents in the city or town
C. Increase in the labor costs of construction
D. Increase in the population of the city or town



Answer :

GinnyAnswer

Final answer:

Various factors can lead to a decrease in house prices, such as higher mortgage interest rates, lower household incomes, and changing social preferences.


Explanation:

A decrease in the selling price of houses in an area can result from various factors:

  1. Increase in mortgage interest rates: Higher interest rates make borrowing more expensive, reducing the number of qualified buyers.
  2. Decrease in the income of households in the market: Lower income levels impact affordability, leading to decreased demand and prices.
  3. Change in social preferences: Shifts in preferences away from homeownership can lessen demand, affecting prices.

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