Property
is said to be the best investment. However, there are many factors that
affected this industry that every people need to consider. One of them is
weather. It’s shown when the property industry in US has goes down because of
the snowstorm last year. And, with combination between the price that always
increase and high mortgage rates, it makes the problem in property industry of
US last February. One of them is the decreasing of the sales that become the
lowest in past 19 months.
However,
there is latest business news about the US property industry that say
there is some good development in this industry. According to CoreLogic, the
house prices are increasing around 12.2 percent last February compared to one
year ago. However, this can be said as small increasing, compared to the
January that is only 12 percent. CoreLogic also found some increase for
month-to-month basis house prices last February. They found that the house
price increasing around 0.8 percent compared from January. The good thing, this
price hasn’t been affected by the seasonal weather. The increasing house prices
are also caused by the supply of property product. Although the sales still
can’t move from its old problem, which is slow sales pace, this low supply make
the price rises. As we all know, because the rarity has strong effect on the
price of the product.
Although
the prices of property product increasing, but, most of economist think that
this isn’t good condition. It’s mostly because of the slow sales pace. They
predict that the pace will be hastened on the earlier spring buying season.
But, it won’t as fast as last year. If this is what will happen, this isn’t good
thing for property industry for welcoming the real implementation of the policy
about monetary stimulus that The Fed will be activated soon.
