Hard Times? Washington, D.C., Real-Estate Bubble Hasn't Burst Yet

Right on cue, a new housing report affirms what Sunshine State News asserted last week: Washington, D.C., resides in a recession-proof bubble.

The D.C. area, according to the S&P/Case-Shiller home price index, was only one of two U.S. metro markets in the nation to post an increase in housing prices in the past year.

Washington's average single-family home sales price climbed 3.6 percent from January 2010 to January 2011. And, unlike San Diego, the only other major city to register a gain (a tiny +0.1 percent), you can bet it wasn't because of the weather.

With the 18 other cities reporting year-over-year declines of 7 percent or worse, the continued rise in D.C.-area housing prices furnishes more evidence of that region's robust, government-fueled economy.

Too bad it's at the expense of everyone else.