Mayfair Group: Property prices continue to increase

Homes builders are optimistic of future sales and it can be seen in the homebuilder sentiment index of May 2010.The rise in index means the property prices may increase in future because increase in sales indicates an increase in demand of homes and as the demand increases prices may go up. There is a big link between job stability and increase in sale of homes.

During downturn 6.7 million Americans lost jobs for at least 27 weeks .The jobless rate in Michigan was more than the average of U.S. in 2009 because of the high number of layoffs in the three largest motor companies. Michigans jobless rate was 14 percent whereas the average jobless rate of U.S. was 9.9 percent. Many homeowners could not pay the mortgages which resulted in bank foreclosures. The increase in number of foreclosures reduced the property prices but if the job condition improves the property rates will further rise.

New bill to provide employment benefits to jobless

Lawmakers are supporting a bill called American Jobs and Closing Tax Loopholes Act which would fund summer jobs, provide loans to small businesses and provides tax relief in the low income group. The bill was introduced by Rep. Sander Levin and the house will vote on the package of tax cuts on Friday and Senate will discuss the issue next week. The total cost of the bill is still not determined.

The new legislation will protect the workers and their families by providing health benefits and giving extension to unemployment benefits.

About 300,000 summer jobs will be funded for youth in the age group of sixteen to twenty-one years. In Michigan last year twenty one thousand youths were paid through summer jobs program.

To increase lending to small businesses and to cover the loan fees and loan guarantees, an extension of American Recovery and Reinvestment Act's program is planned.

The bill will provide extension to the Build America Bonds which are for infrastructure projects proposed to provide a number of jobs.

Tax credit will be provided to various programs such as the farming machinery or research & development to the low income group.

The bill will provide extension to the eligibility date for jobless benefits and provide $25 bonus in weekly benefits.

Extend the subsidy on Health insurance for fifteen months to the laid off workers.

The bill is aimed to provide a number of jobs to the American workers and to help the laid off workers.

In Michigan a number of projects have been initiated to bring in more jobs to the state. If the employment condition in state improves the first impact will be seen on the prices of the properties because many young jobless people living with their parents may opt to shift to their own home. The cheap property price in Detroit attracts young buyers to the place who find it easy to buy and also easy to rent.

The three motor companies of Detroit have announced profits in Q1 in the year which ensures future stability of the people working in these factories. Many buyers who are in a stable position in their jobs have planned to invest in the low cost properties in Detroit and some are planning to immediately spend on the properties to get a valuable house at bargain price.