Housing Prices See Large Increase
Housing sales have recently seen an increase in pricing, more people are willing to buy houses, but the amount of houses available for sale remain small, this is what is causing prices to see such large increases. The rate of increase of prices is the largest rate that the housing industry has seen since 2006, prior to the housing crisis of 2008. Some states have seen double-digit percentages in price increase of housing.
Although the housing industry is doing well employment is not. There are still many people who are unemployed, so although housing prices are beginning to increase again, this may not be a sign that our economy is going through large recovery. The price increase has little to do with the economy, and more to do with the amount of houses available on the market. It is necessary that people are aware that such signs do not indicate that the economy is healthy, but this increase in price can be looked at as a step to a recovering economy.
Written by: Jessica Ho
Source: The Wall Street Journal