Year Quarter DC-VA-MD-WV (MSAD) NY-NJ (MSAD)
2007 2 1.16 2.72
2006 4 6.57 6.47
2005 4 24.1 15.9
2004 4 22.1 15.3
2003 4 12.7 11.8
2002 4 11.8 12.2
2001 4 12.1 10.7
2000 4 10.5 11.3
1999 4 4.99 10
1998 4 3.07 5.5
1997 4 1.93 3.94
1996 4 -0.96 1.07
1995 4 2.57 3.34
1994 4 -2.61 -3.03
1993 4 0.45 0.8
1992 4 0.44 1.36
1991 4 1.95 -1.13
1990 4 -0.82 -6.27
1989 4 8.11 -0.06
1988 4 14.5 3.33
1987 4 15.4 17.8
1986 4 9.7 24.5
1985 4 6.53 20.3
1984 4 5.42 19.1
1983 4 3.58 14.6
1982 4 4.4 5.92
1981 4 3.72 10.8
1980 4 8.92 9.93
1979 4 12.6 20.9
1978 4 14.7 9.31
1977 4 10 4.09
1976 4 6.82 3.07
1975 4

Miat's comment:

In past postings, I talked about the concept of real estate value doubling every 10 years. Now, let's revisit OFHEO data from 1976 to 2007 for the DC and NYC metro markets, we discovered something interesting. Before this 1998 to 2006 boom, the previous boom was actually more significant in terms of price movement. As we can see, from 1976 to 1989, there had been an up leg of 13 years for the DC area and 12 years for the NYC area. The last up leg lasted only 7 years and was less in total price appreciation. Summary: The 13 year boom from 1976 to 1989 raised home price by 325%. The 7 year boom from 1998 to 2005 raised home price by 270%. Why does Case-Shiller chart suggest that house this time is more overvalued than last time (by end of 1989) ? My understanding is that inflation pressure since 1989 to current has not been as large as that from 1976 to 1989, therefore, relatively speaking, housing price by end of 2006 is more pricy than by end of 1989.

What will happen to the future? Housing price will have to wait till inflation works its way to reduce the relative value to possibly spawn another boom cycle. Inflation pressure has been low for more 17 years now. I strongly believe that it's time for it to pick up. What's currently happening in the market has all signs pointing to it. Other than energy price, I am seeing income to be back on fast track up for the next 10 years because US is more and more entering a labor shortage as baby boomers are fast retiring.