According to a closely-watched measure, U.S house price shows the biggest annual increase since 2006 as it rose 12 per cent compared to last year’s statistic. The measure index states that 13 out of 20 measured cities have shown some increase growth rates in the past year. The biggest growth rate is Las Vegas with 27.5%, and San Francisco, Los Angeles and San Diego all saw rises of more than 20%. An analyst Stan Humphries, a chief economist for real estate data provider Zillow, says that an increase in the house price is sign of economic recovery and is good for the market in general as it shows steady job growths, low montage rate and relatively low price. However, the survey points out that house prices in those cities are still way below the peaks hit before the 2008 financial crisis. There is a hidden concern about whether this phenomena is going to be a repetition of the 2006 US real estate house bubble as a change in house price being to dramatic. In my opinion, even though a housing price growth is a positive sign of the economic recovery, it is better for the house market price to increase at a slower pace to prevent any sudden bubble burst. Will US real estate face another bubble crisis? Or this increase is a positive boom for US economy?
“US House Prices in Biggest Annual Rise for Seven Years.” BBC News. BBC, 24 Sept. 2013. Web. 28 Sept. 2013. <http://www.bbc.co.uk/news/business-24225746>.
“U.S. Housing Prices Jump 12.4%, Leading to Worries about a Bubble.” CBC News. CBC News, 24 Sept. 2013. Web. 28 Sept. 2013. <http://www.cbc.ca/news/business/u-s-housing-prices-jump-12-4-leading-to-worries-about-a-bubble-1.1866835>.
Writer, CHRISTOPHER S. RUGABER AP Economics. “US Home Prices Rise 12.4 Pct., Most in 7½ Years.” ABC News. ABC News Network, n.d. Web. 28 Sept. 2013. <http://abcnews.go.com/Business/wireStory/us-home-prices-rise-124-pct-years-20355067>.