(Company). N.p., n.d. Web. 20 Nov. 2013. . "Wikia."
If comparables are selling at foreclosed prices then it will bring the prices down per square foot for none foreclosed homes. This will have a negative outcome on home prices that are non-foreclosures. In addition, another important factor in housing that impacts price is inventory. The more inventories that are available will cause the price to drop negatively as there is more supply than demand. In Stockton, California the number of home sales in 2013 was 767 down 18.4% year over year [Trulia].
This further skews the price stability of the housing market for a given area. • Last, rent control diverts investment in dwellings, which may need it the most, and tenants are forced to live in sub-standard dwellings. If an investor purchased a rental property for income purposes and is now limited to unreasonable returns, what keeps them from cutting their losses and diverting their funds to other investments that promise a greater return? If the government eliminated rent control, I feel to following effects would be prevalent now and in the long run: • The market system would inevitable regulate itself, finding an equilibrium between ... ... middle of paper ... .... • Last, many current minimum wage workers may be inspired to work harder at mastering their skill or educating themselves to become more productive members of society versus sitting back and waiting for another pay raise in the form of an increase to the minimum wage. There is a place for limited oversight and regulations to control the “greed” aspect that is found in capitalism, but it is just irresponsible for governments to uphold policies that were mandated decades ago for economic conditions that no longer apply.