Bubblicious: Looking at the U.S. Real Estate Market
by Seth Sandronsky
eyes are on the U.S. real estate market. "During the past five years, home
prices have risen at an annual rate of 9.2 percent," according to the 2006 Economic Report of the President
released on February 13. Was this growth normal? We need the historical
context of home price increases to answer this question.
coverage of the report sidestepped the historical context altogether. For
the relevant historical data on recent home prices, we turn to economist
Dean Baker, co-director of the Center for Economic and Policy Research in Washington, DC.