There are 3 ways to calculate what the housing prices should be today. Draw a trendline to 1997, and keep going from there. Where do you end up? I’ve done this for SD and US, and am now working on the other So CA counties, and it will be for fee on my website ($10 or less per month). So I won’t give you my results, but here are the 3 methods:
1) historic prices
2) price/income ratio
3) price/rent ratio
So look at the data until 1997, and then extrapolate the trendline. Why 1997? That’s when the tax law changed to allow you great tax benefits for owning real estate. You no longer had to pay capital gains tax on huge profits. Shortly after 1997, the real estate prices started a rapid acceleration.
This is my opinion, but the charts are powerful.
Look also at the great charts Rich and jg have made.