35% above 2002 price is not too bad if we consider inflation. In seven years, that’s about 4.4% anual, compounded. I think 3.5% annual would be more reasonable than 4.4%, and that results in 27% compounded appreciation, which is very close to the observed 35%.

Compared to gold or the Euro, the house is a bargain today compared to 2002. I know, I know, household incomes around here are not in gold, Euro, etc. But considering that rich people worldwide consider SD for a second home, we can’t ignore these other measures of value.