Property tip: supply and demand determines prices

 Most people base property values on recent sales prices, but it's a basic economic tenet that when demand for a product is stronger than supply, competition forces up the price. Selecting a property in a location that has restricted supply -- or little or no opportunity for more houses to be built -- can be a wise long term move. Areas that are built out, or where the council restricts further development or the location naturally restricts supply (such as near the beach or a national park) can create good dynamics for long term price growth. As demand for a locality increases, the only way potential property buyers can secure a home is to bid higher prices to satisfy their demand. But it's equally true that if demand for a location