Final answer:
The pricing of the remaining homes is influenced by the laws of supply and demand, as well as the theory of rational expectations, which suggest prices rise immediately based on anticipated future benefits, even if those improvements have not yet materialized.
Step-by-step explanation:
The economic principle that can be expected to influence the pricing of the remaining homes in a development when there are only two left is primarily related to the laws of supply and demand. In a situation where there is a limited supply, such as two spec homes in this scenario, and the demand remains steady or increases due to the anticipated improvements such as the creation of local jobs and neighborhood enhancements like parks and libraries, prices are likely to rise. This effect can be compounded by the theory of rational expectations, which suggests that home prices may adjust immediately based on the anticipation of these future benefits, rather than waiting for them to materialize.
Therefore, the immediate rise in home prices in the development would stem from a combination of limited supply and the rational expectations of the buyers who are willing to pay more now, believing the homes will be worth more in the future. This is a reflection of how expectations of future economic outcomes drive current economic behavior, a key concept in understanding market dynamics.