CNNMoney.com
House prices rise means that more investment is put out in the market. This is also a result of the rock-bottom low interest rate in the past year, and now stays at 4.125% .
Some cities receive positive gains, like San Francisco, house market rises by 11.2%. The Bay Area is recovering from the mortgage hit last year, and most likely houses in Berkeley, Oakland, San Jose and other cities in the region are also climbing back to where they were prior to the recession in terms of its high prices.
The government should focus on improving employment as the demand for housing will only really rise once there is a way to pay for it. There should be a stop to constructing more housing so as not to increase the surplus further.
ReplyDeleteThe housing slump in Las Vegas is probably due to the high unemployment rate. If the unemployment rate does not decrease soon, there will also be a drop in consumer spending and hiring, sending the economy into a vicious cycle.
The government should look into tax cuts for entrepreneurs and initiate a better flow of career information and organize job fairs.