[quote=sdrealtor]For me the question is what explains the rest of it. Why do prices rise more and faster here than Cleveland? Why do single family homes rise more than condos. Why has beach area properties appreciated more than East County?
While he did an excellent job, I think it’s just showing how markets behave in general and I’m always looking for the exceptions that allow one to beat the market. Am I missing something?
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It’s important to keep in mind that the above charts and data do not answer most the questions you are asking. These charts and data are really only about the cause of the rise in house prices over the last 30 some years in a broad area. (San Diego in this case) And as you have pointed out previously, that relationship might not be causal.
Additionally, this data and charts do not explain any of the deviations from the expected price such as the housing bubble we saw in early 2000’s. So, clearly the relationship between interest rates, inflation, and house prices doesn’t hold true at all times.
I could make some speculative guesses as to why prices didn’t rise as fast in Cleveland, and why they rose even faster in Silicon Valley, but without data, they would just be guesses. But in this thread I’m trying to stay within Piggington’s motto: “In God we Trust, Everyone Else Bring Data.” (Although admittedly I do think that question could be a really interesting discussion. But it probably needs its own thread.)
