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A comparative analysis of real estate sales activity
This thesis is an analysis of the reaction of real estate submarkets to different monetary conditions.The study is basically a dual comparison: 1. A comparison of two real estate submarkets to one another, over periods of tight and easy money,or over periods of high and low mortgage rates,respectively. 2. An analysis of the composite sales data for two real estate submarkets, over periods of tight and easy money. The objective is to determine the effects of different rates of interest on the relative sales activity in carefully defined real estate submarkets.A real estate submarket being considered homogeneous in respect to population,value,and locale. The hypothesis which is tested is residential real estate sales activity, in carefully defined real estate sub markets,varies directly with interest rates and disproportionately between submarkets.The conclusion drawn is that there is an inverse correlation between sales activity and interest rates. Moreover, the sales activity of submarkets with widely differing home values varies in a disproportionate manner.