NEW YORK ( CNBC) -- When housing began to simmer back in 2002, prices were rising around seven percent a year, then eight percent in 2004 and a stunning 12% in 2005. At the time, words like "bubble," and "unsustainable," were uttered with every monthly reading. No one had seen home prices soar like that since the mid 1970's. Historically, prices nationally rise about three to four percent a year. The market was clearly too hot, and by 2007 it had reversed dramatically, with prices falling nationally for the first time in history. Fast forward to today and the housing recovery.
By Diana Olick, CNBC Real Estate Reporter
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