The article explores how real estate prices are determined and why the market sometimes experiences bubbles and crashes. By using demand and supply analysis, the researchers redefine the concept of value in real estate. They show how investors and credit institutions play a role in shaping the market, both positively and negatively. Through numerical experiments, they simulate different scenarios to understand market behavior. The findings offer important insights for real estate providers, investors, customers, credit institutions, and policymakers. This research lays the groundwork for future studies on market behavior and valuation in real estate.