User:Nick Gardner /Sandbox
Beginning in 1997, the U.S. witnessed house price appreciation that was highly unusual in historical terms. Between 1997 and 2006, real home prices increased by nearly 85 percent.1 Sustained price increases near this magnitude have only been observed once during the twentieth century, in the period immediately after World War II2 (See Figure 1). In fact, during the period 2001 through 2005, the annual rate of house price appreciation accelerated. The S&P/Case-Shiller® Home Price Index shows annual price appreciation rising from slightly over eight and one-half percent in 2001 to more than 15 percent in 2005.
[1] JEC Oct 2007
The price of the average UK house has risen by 187% to £179,000 since February 1996. http://news.bbc.co.uk/1/hi/business/6090972.stm BBC news 2006 Friday, 27 October 2006
between 1995 and 2007 I prices more than quadrupled [2]
Many economists argue that house prices have risen too far too fast in many markets, forming a bubble that could rapidly collapse and trigger an economic downturn, as overinflated stock prices did at the turn of the century currently chairman of the president's Council of Economic Advisers, in testimony to Congress's Joint Economic Committee. But these increases, he said, "largely reflect strong economic fundamentals," such as strong growth in jobs, incomes and the number of new households. [3]
House prices have risen by nearly 25 percent over the past two years. Although speculative activity has increased in some areas, at a national level these price increases largely reflect strong economic fundamentals, including robust growth in jobs and incomes, low mortgage rates, steady rates of household formation, and factors that limit the expansion of housing supply in some areas. House prices are unlikely to continue rising at current rates. However, as reflected in many private-sector forecasts such as the Blue Chip forecast mentioned earlier, a moderate cooling in the housing market, should one occur, would not be inconsistent with the economy continuing to grow at or near its potential next year.
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- ↑ The Subprime Lending Crisis, US Senate Joint Economic Committee, October 2007
- ↑ Daniel Kanda: Asset Booms and Structural Fiscal Positions: The Case of Ireland, International Monetary Fund, March 2010
- ↑ Nell Henderson: Bernanke: There's No Housing Bubble to Go Bust, Washington Post, October 27, 2005
- ↑ [www.house.gov/jec/hearings/testimony/109/10-20-05bernanke.pdf Ben Bernanke: The Economic Outlook, Testimony to the Joibt Economic Committee October 20 2005]
- ↑ Robert J. Shiller: Historic Turning Points in Real Estate, Cowles Foundation Discussion Paper No. 1610, NPR news, June 2007