Suppose that we are analyzing the real estate market (new housing) and the costs of building such a house/dwelling fall (i.e. wood is cheaper, or wages are lower, or technology is improved). How would this affect the final equilibrium P & Q in the real estate market and why? Explain and show on graph. In order to answer the question and show the transition from the initial market equilibrium to the final equilibrium, please follow the "five step analysis" mentioned below and explain what happens at each step/stage.

Steps:

1. Start from initial equilibrium E1 (P1,Q1)
2. Shock/shift: D?? or S?? and in which direction ?
3. At the initial P1, XssD or XssS ??
4. Price adjustment ??
5. Final equilibrium E2 (P2, Q2)