From my research, Fed's Qe should encourage house sales, however the graph shows houses price in the state seem to gradually go down after 2009. Isn't that contradicting itself? Ain't the increase in demand suppose to push the price of houses to go up? or am I wrong. Is the Fed Qe effective at inducing the house sales in the US? And if so why does it happens to be that way?
There is a contradiction in your statement. If QE supposedly motivates house sales, then the price should indeed go down. I think you are trying to say that QE should motivate house purchases. Well, QE is designed to make long term interest rates (including mortgage rates) go down, so yes it should help housing prices, ceteris paribus. If you observe, housing prices have indeed recovered substantially since QE was initiated.