Question

Home owners would hold off trying to sell because​ _______.

a. new housing developments decrease the supply of existing housing
b. mortgage rates are rising
c. new housing developments increase the demand for housing and raise the price of a home
d. they expect the price of homes will rise in the future

Answer 1

D. They expect the price of homes will rise in the future.

A. Is false. New developments would increase the supply.
B. Would negatively affect homeowners because higher mortgage rates means the homeowners owe more money on their mortgages.
C. Demand doesn't depend on the supply of housing developments.