What does the principle of "Supply and Demand" signify?

The principle of "Supply and Demand" signifies that the price of real property is influenced by the relationship between supply and demand. When demand for properties increases and the supply remains the same or decreases, prices tend to rise. Conversely, when the supply of properties increases while demand remains constant or decreases, prices typically fall. Thus, this principle reflects the dynamic interplay between the availability of properties on the market and the desire of consumers to purchase them, which ultimately determines market prices.

Factors impacting this relationship include economic conditions, population growth, and consumer preferences. It's essential to recognize that both supply and demand need to be considered together since they affect each other and influence market values significantly.