Since July 2020, the annual increase in the median price for a detached home in Prince Edward County has increased between 20% and 40%, depending on the month.
In 1951 social psychologist Kurt Lewis develop a simple tool used to analyze organization performance which can also be used to visualize the factors driving real estate price levels.
Lewin’s tool was called “force field analysis”. His idea was that organizational performance was the result of an equilibrium of two types of forces: factors pushing performance higher and factors driving performance lower.
An increase or decrease of forces on either side would result in a new equilibrium.
Similarly, when it comes to price levels for County real estate, there are a variety of factors working to push prices higher as well as things which are driving (or could drive) prices lower.
Force field analysis is a simple, graphic way to understand what those forces are and what developments could cause prices to move up or down in the future.