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Home Publications Reports The Run-Up in Home Prices: Is it Real or Is it Another Bubble?

The Run-Up in Home Prices: Is it Real or Is it Another Bubble?

August 2002, Dean Baker

This paper examines whether the increase in home prices can be grounded in fundamental economic factors or whether it is simply a bubble, similar to the stock market bubble. It concludes that there is a housing bubble. While this process can sustain rising prices for a period of time, it must eventually come to an end.

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