Seminole County is a county located in central Florida. It is one of the counties in the Greater Orlando Metropolitan District and creates a viable, progressive, and diverse setting for economic growth and residential development. See the data below for Seminole county housing market in April 2022:

• The number of homes for sale reached 1,538,
• The average time on the market was 13 days,
• The median list price (the price tag on homes) was $346,109,
• Housing inventory decreased by 8.68%,
• Over 343 listings were sold over their listed price, over 145 listings were sold below the listed price, and 101 listings were sold for the listed price.

Between March 2022 and April 2022:

• The number of listings (that is, the quantity of homes for sale in the market) decreased by 8% while listing prices of homes increased by approximately 20%,

Discussion Prompt:

Consider these changes in the market for houses for sale (not for rent) in Seminole County on future home prices and the number of homes sold.

1. The interest rates that many new homeowners pay on the loan they borrow to purchase a new home are increasing. (This type of borrowing is called a mortgage.)
2. House prices are at record highs.
3. "There were so fewer homes for sale that lines for open houses stretched for blocks and move-in ready places in desirable areas were receiving dozens of offersand prompting soul-crushing bidding wars."
4. Supply chain problems (such as shortages in plywood, back orders in window panes, appliances, fixtures...) continue
5. Escalating wage rates

Discussion questions:

1. For any three of the above changes, other things equal, decide how the supply and/or demand for homes will be affected and why. Make sure you draw a graphical representation of each of these changes.

In addition, for each change, write responses to describe how the quantity supplied and/or demanded, and the market price will change. Remember a change in supply is different than a change in quantity supplied and a change in demand is different than a change in quantity demanded.

2. Consider two of these factors/variables simultaneously:

1. The interest rates that many new homeowners pay on the loan they borrow to purchase a new home are increasing. (This type of borrowing is called a mortgage.)
2. Supply chain problems (such as shortages in plywood, back orders in window panes, appliances, fixtures...) continue

Since these factors/variables are influencing the market concurrently, decide on the most likely effects on home prices and the quantity of homes sold. Be sure to make a supply and demand graph to clarify and explain your conclusion focusing on:

1. How would the equilibrium price and quantity for homes change?
2. Justify your predicted result
3. Graph clarifying and explaining your conclusion: