Systematic approach to real estate market functioning

Straipsnyje analizuojamas nekilnojamojo turto (toliau - NT) ūkio funkcionavimas taikant sisteminį požiūrį, atskleidžiama išorinės aplinkos, arba gaubiančiosios sistemos, pokyčių įtaka NT ūkio, kaip gaubiančiosios sistemos vienos iš posistemių, veikimo rezultatui. Straipsnio autorė tiki, jog sisteminio požiūrio taikymas analizuojant NT ūkio funkcionavimą gali padėti numatyti galimus NT ūkio, kaip sistemos, funkcionavimo pokyčius bei geriau jiems pasirengti.The purpose of the article is to analyse real estate market applying systematic approach and prove the impact of surrounding environment to real estate market development. The real estate market and its functioning in the changing environment are being analysed applying theoretical knowledge and systematic approach. Real estate market traditionally is being analysed by certain overview of the major market factors - supply and demand. "Residential market finances", "market mechanism" or other terms are more or less used in the theoretical or practical discussion; however, real estate market's functioning is not isolate in a certain area. In general, real estate market can be described as organizational possibilities and means, which allow acquisition, exploitation, renovation, or sale of the property according to certain rules, which mostly are defined by economical system. The property market, as any other market, is surrounded or is a part of other, larger macro market, or system, and it is worth to analyse any market having in mind a potential impact of surrounding environments. The fact that real estate can not be moved into other geographical location, tells that property market is sensitive to surrounding, macro markets in particular. These aspects encourage going deeper and seeing major impacts of the surrounding environment - economic, political, and cultural, etc. In general, it is advisable to analyse real estate market applying systematic approach, as it has all systematic features: we can easy identify market participants (elements), determine interrelations among the elements, analyse functions of the system and the environment it is functioning in. Every functioning market has its own goals. The major goal of residential market is allocation of goods (Jaffe, 1989). The market is functioning effectively, when its goal - to allocate the goods - is achieved. Interrelations and actions of the market participants directly depend on surrounding, or larger systems' impact. Changing environment - improving or worsening financing terms, growing or decreasing wages and possibilities to acquire the property has a huge impact on demand and supply in the market. Being a part of a larger system, real estate market is influenced by economic, political structures. Certain events in one of the structures (inflation growth, banks' financial policies, and real estate market crisis in other region, etc.) set some norms of internal participants' behaviour. Close monitoring of surrounding systems and internal elements behaviour may allow softening possible outcomes or at least help to be better prepared for future changes in the market