Supply is made up of the number of houses in the market, and consequently, of these, the number of houses which are up for sale.
As the prices of houses for sale increases, the demand for purchase of these properties decreases.
Changes in quantity demanded just mean movement along the demand curve itself because of a change in price.
These two ideas are often conflated, but this is a common error; rising (or falling) in prices do not decrease (or increase) demand, they change the quantity demanded. The shape and position of the demand curve can be impacted by several factors.
Residents, or the general population of individuals, place significant reliance on financial institutions to provide sources of capital i.e mortgages, to fund their purchases of homes.
The rate of interest charged by these organisations in turn gives buyers (consumers) purchasing power, creating demand.
The law of demand is one of the most fundamental concepts in economics.
It works with the law of supply to explain how market economies allocate resources and determine the prices of goods and services that we observe in everyday transactions.
The law of demand states that quantity purchased varies inversely with price.
In other words, the higher the price, the lower the quantity demanded.