Question

Question 2. Will Southern California ever stop having real estate bubbles?

Write 1 paragraph at most

Answer 1

Southern California is one of the most popular and expensive regions in the USA that has witnessed robust economic growth in the area. It has caused the soaring real estate prices. Though, such development in the real estate sector, should not be treated as bubble because the surge in pricing is not because of the poor lending practices, rather it is the sound economic growth, lower housing loan rates as well as only a few properties are available for sale that have led to the surge.
In coming time, the surge in real estate prices will come down and growth will be moderate due to the reason that employers are finding it difficult to get the employees outside of the southern California, making employers to move out of the region to continue the business. Further, there are now new builders coming to the area to build real restate properties. It will increase the supply and real estate prices will come down. Besides, there is always a constraint of scarce resources and their lack of availability in the region, will decrease the demand and real estate sector will grow with the moderate pace as that of other parts of the USA.