The NYT article on the decision of the National Bureau of Economic Research to officially label the downturn a recession included a set of charts comparing the current recession to the last five. One of the charts shows the year over year change in house prices. These numbers are given in nominal terms, which leads readers to believe that house prices had continued to rise in prior recessions. If the price changes had been adjusted for inflation, then house prices would have dipped in the recession in 1980, 1981-1982, and 1990-1991.
--Dean Baker
