Imperfection of real estate market and its returns Q4

Markets generally operate through the law of supply and demand to achieve efficiency in the economy. However, the housing market is not an efficient one due to the imperfect nature of real estate.

a) Explain why the housing market is an imperfect market. (10 marks)

b) Explain the impact of market imperfections on real estate returns. (10 marks)

(20 marks, 2019 Q4)