The truth about housing prices

posted by
February 20, 2011
Reason
by Veronique de Rugy  
Posted in Commentary

"The idea that economic recovery can’t happen unless our housing prices return to pre-recession levels makes no sense. First, as the chart below shows, for most of American history housing prices grew at a relatively slow rate. It was only in the last 15 years that prices exploded. The factors behind this sudden change are a mixed bag of government policies that encouraged homeownership and cheap interest rates and a willingness by banks to lend to people who could only realistically afford to pay if housing prices doubled every two years." (02/18/11)

http://reason.com/archives/2011/02/18/the-truth-about-housing-prices  

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