Moreover, the secondary market following condition of competition. Holds a number of independent retailers, unlike the market of new buildings when the price of the entire volume of a particular house is an expression of political will company-builder. New buildings are scattered around the city in a discrete manner, and prices are subject to change due to forceful jerks solutions developer. This creates the illusion that housing prices have skyrocketed, or vice versa, rose. It is important to understand that the price of new buildings is not independent, as the apartments of the secondary market, and is a function of sales volume.

It can be much lower if need to quickly sell a large amount of apartments and return credit, or on the contrary above, if it is possible to slowly sell off housing at a maximum price. In other words, often the price of new construction is determined not so much a market as the chosen strategy of sales. Thus, although the new building and strong influence on the real estate market, but are a poor guide to identifying obscherynochnoy trends. Additional confusion can make sales activity, creating a sense of the boom in some periods and calm in others. But periods of growth and decline of consumer activity may be associated with a variety of factors and do not mean the correction in prices.

The overall level of housing prices can only be smoothed and averaged response to any such local changes. And the level of secondary market prices more in line with these criteria. Another hypothesis is the notion of the existence of the curve expressing the change in the overall level of market prices.