Really. I will not underestimate the greed of people, but if we ever get to those highs ever again in however many years, it will be amazing. Nine years only?[/quote]
JP, your chart shows inflation-adjusted prices. The forecast in question involves nominal prices.
In San Diego, prices are down a bit less than 40% from the peak (in aggregate per CS) so this implies an average price growth rate of about 5.5% per year over the following 9 years. This does seem a bit optimistic but it’s not completely out of whack (especially considering that homes in aggregate are slightly undervalued at this point).
Personally I think it’s silly to predict the nominal price of anything 9 years down the road, since I do not believe that historical assumptions about inflation will apply over this time period.
