YOUR APARTMENT WOULD BE WORTH A LOT LESS

Jonathan Miller
real-estate appraiser, Miller Samuel

September 11 prompted this housing boom. Just before 9/11 we were in a recession; housing prices began to fall and volume really dropped off. We would have seen a continuation of a slide throughout much of the next two years. A run-up occurred as the result of the Fed’s post-9/11 action to drop interest rates, which led to a sharp decrease in mortgage rates. It’s that decrease that ultimately led to the price appreciation we’ve seen.