SDR, for Aug. ’06, the predicted price ($426K) is only 77% of the actual price ($555K).
VC, like you, I thought about putting in a dummy variable for ’03-’06; but, as I was only using data through ’03 to estimate the model, and as the frothiness really seemed to take off in ’04, such wouldn’t fully capture things. Maybe I’ll use data through the end of ’04 to fit the model, and only predict against actual for ’05-’06.
