While the rest of the country suffers in declining home prices, housing prices continue to boom in Washington, DC. Yesterday’s S&P Case Schiller home price index shows housing prices in the nation’s capitol rising 4.1% while the rest of the country is suffering a decline. In their survey of the top 20 metropolitan areas, 11 cities saw home prices fall to new lows as foreclosed homes pushed home prices downward. Many areas experienced home prices fall as much as Las Vegas, which saw home prices fall 9% over the past year.
Federal government hiring is one of the few bright spots in an otherwise dismal jobs climate and Washington unemployment is lower than most of the rest of the country. Officially the unemployment rate is 9% with millions more either underemployed or so desperate they have given up trying to find work.
Record federal spending under the Obama administration has spurred the public sector job growth, but at a price. Last month it was reported that the federal deficit in 2011 would be $1.6 Trillion while approaching years of deficit spending will require Congress to raise the debt limit beyond $14 Trillion.
Still, in DC, the good times seem to continue to roll.