How and why behavioral economic method can predict house buyers house purchase need or desire whether the country's house buyers their house purchase need or desire will increase or decrease in the year. I shall explain the reasons as below: Supply-side economists say that increasing business growth, not consumer demand, will boost the economy. They agree the government has a role to play, but fiscal policy should target companies. They rely on tax cuts and deregulation. So, supply-side economists believe that raising house buyers' house purchase or long term renting or instalement payment desires. Government or business organizations will play a important role, e.g. decresing salary tax, banks can charge low interest to encourage many people to borrow much long term loan or money to spend long term expenditure, e.g. buying house. So, it seems that other parties will encourage house buyers' house purchase more more than themselves psychological feeling influence. Otherwise, demand-side economists say that any house buyer individual psychological living need desire is more influential to encourage they choose to buy house in preference. On one hand, in demand-side economists view, I shall apply behavioral economic concept to explain why and how causes house buyer individual house purchase choice in preference than rent choice . On the other hand, in supply-side economists view, I shall apply demand and supply economic concept to explain why and how casues house buyer individual house purchase choice in preference than rent choice in property market.What does behavioral economy mean ?Think about supposing you plan to buy a house. You may have decided to simplify your decision making by opting for the house price, living environment, such as air and noise pollution, income level, school, public library, public park, public swimming pool, transportation facilities etc. different factors to influence you house purchase decision in the location. You may then have visited the house location to view its environments before you decide to choose the location to buy the house to live. But the decision making process did not stop there, as you now had to customize your model by visiting from different house location . You aim to compare whether anywhere location(s) can let you to feel the location is better to let you feel to live.) Instead the house location and environment factor, you were still considered the house appearance and design and comfortable feeling features you really needed. At this stage, most property developers will show a base model with options that can be changed according to whether the house buyers their preferences are environment, house design, house price, facilties before they decide to buy the house to live. The way in which these different location of house choices are presented to house buyers will influence the final house purchases made and illustrates a number of concepts from behavioral economic (BE) theories.First, the base model shown in the customization engine represents a rational choice to any house buyers' purchase decision usually. Usually, house buyers, they will visit the house location to feel its living environment, entertainment facilities supply, transport facilities supply and house design and comfortable feeling to decide to buy the house to live, instead of income factor in house market. The more uncertain house customers are about their rational house feeling, such as comfortable living, environment and facility and house design decision, instead of income factor influences can change their earlier first house purchase decision if they feel the house price is more expensive to compare the other houses choices.
