Running Head: RANDALL S.

GUTTERY LAB JOURNAL

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Randall S. Guttery Lab Journal

Erica Wong

University of Texas at Dallas

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Randall S. Guttery Lab Journal

Mr. Guttery went over what Real Estate is and how it has an incredible impact on each

section of business and public policy. In the Spring of March 2017, listings were scarcer than

theyve ever been because the prices on housing continue to rise. Bidding wars are extremely

commonplace in metropolitan areas such as San Francisco, Denver, and Boston due to the

difference in demand and supply. The demand for housing in those areas are insane, but the

supply of living areas are not enough to meet that demand- thus, crazy bidding wars skyrocket

prices year after year. Because of this, many homeowners do not know where they would move,

even though they would profit by a longshot off of their house- thus, they choose not to sell their

house. As Mr. Guttery mentioned in class, real estate can get somewhat complicated, especially

when the building was already built and sold before the buyer had time to figure out what was

wrong with it. That being said, in this case, it is somewhat similar- except this time, the problem

is that people do not have the luxury of having other options. For the museum in Dallas, they

could have chosen other buildings if they had just been a tad bit more patient. But for some of

these families, they do not have a choice because someone in their family needs to move there in

order to work in, say, San Francisco. And he starts within the next month. Even if the house the

family moves into is not worth what they paid for it, or it was deceptive, because of their

situation they cannot afford to do much. The demand for the homes drives up the prices, so

people just take what they can get at this point. Unfortunately, I cannot present a reasonable

solution, but it is easy to point out the obvious flaws in the housing market right now. Whether

this leads to another economic recession or not, this is an issue that should be monitored

carefully. Perhaps capitalism will take its turn, or, like Mr. Guttery warned, they will just have

to end up in this situation without much of a choice. Thus, real estate affects the world of
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business and public policy in multiple ways whether we like it or not, eventually we will have

to deal with this ourselves as students.

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References

Gopal, Prashant. Homebuyers Face Bidding Wars on Scarcer-Than-Ever U.S.

Listings.Bloomberg.com, Bloomberg, 17 Mar. 2017,

www.bloomberg.com/news/articles/2017-03-17/job-surge-fuels-bidding-wars-for-record-

low-supply-of-u-s-homes.