I chose 2001 for a reason which has nothing to do with when prices stopped making sense. it has to do with the availability of data. In most of SD there was very little new construction between 1990 and 1997. However, that changed dramatically in 1998. The higher priced asset classes which most of you would be interested in at some point in the future (i.e. homes currently selling for $800K and up) that I wanted to look at were mostly built starting around 1998. I chose 2001 to allow for these homes to start hitting the market after 2 years. If I start earlier, the homes currently over $1M are typically custom homes or beach properties for which it is much more subjective to say what a house sold then would currently sell for. For tract homes, it’s easy to look in an area you know well at a historical price and come up with a pretty accurate current value
