[quote=sdrealtor]I guess I need to phrase my question better. Lets say location is irrelevant. This isnt a trick question. I always see people getting crazy over the prices and appreciation. What I saw gave me reason for pause and I wonder what people’s expectations are. I dont think it even matters that its a house. In 1987 I bought myself a car that I paid $16K for. I just checked and a comparable car is now about 32K. To me 2X over that time period seems about right but I am curious as to what others think.
What would be reasonable appreciation of an asset over 22 years? I think I need to set up a poll if I only knew how.[/quote]
One can’t say that all asset prices are going to rise at the same rate over time. It depends very much on what that asset is and whether or not the supply and demand are elastic, also whether or not it’s a basic good or if it can be substituted easily, or if its desirability has been affected over time, or if it’s more affected by credit or wages and whether or not wages or credit have expanded or contracted, etc.
IOW, there are too many variables to suggest that prices of all assets are supposed to behave the same way over a period of time.
