In real terms, house prices in the 113 years leading up to 2003 had only appreciated at an annualized rate of 0.4%. However, in the three short years from 2003 to 2006, the index appreciated 32.5%.
By John M. Templeton June 15, 2005 Increasingly often, people ask my opinion on what is likely to happen financially. I am now thinking that the dangers are more numerous and larger than ever before in my lifetime. Quite likely, in the early months of 2005, the peak of prosperity is behind us. In the past century, protection could be obtained by keeping your net worth in cash or government bonds. Now, the surplus capacities are so great that most currencies and bonds are likely to continue losing their purchasing power. Mortgages and other forms of debt are over tenfold greater now than ever before...