Wednesday, August 29, 2007

Over-valued real estate #36 - Philadelphia

I posted Philadelphia already. Unfortunately, I used the years 1977-2004 rather than 1978-2005. The mistake was important; house prices went up 13 percent last year. House values are now 41 percent above trend. Sorry about the error, but it does go to show just how much of the bubble has been due to the price rise in the last year. That is the power of compounding!

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