Comments on: Reversion to Mean for Bay Area House Prices? http://www.burbed.com/2006/05/26/reversion-to-mean-for-bay-area-house-prices/ SF Bay Area Real Estate, Home Price and Mortgage Insanity Blog - Burbed.com Fri, 12 Mar 2010 00:06:33 -0800 http://wordpress.org/?v=2.9.2 hourly 1 By: One FukkaModa http://www.burbed.com/2006/05/26/reversion-to-mean-for-bay-area-house-prices/#comment-9308 One FukkaModa Wed, 22 Aug 2007 07:22:46 +0000 http://www.burbed.com/2006/05/26/reversion-to-mean-for-bay-area-house-prices/#comment-9308 Are you guys kidding? If you are not bullish yet on the SF Bay Area, then there is no hope for you my little pundits. Bay Area real estate will be Class A from now until the earth is extinct..... Go travel to some new lands and then you will learn quality. BGiotch Are you guys kidding?

If you are not bullish yet on the SF Bay Area, then there is no hope for you my little pundits.

Bay Area real estate will be Class A from now until the earth is extinct….. Go travel to some new lands and then you will learn quality.

BGiotch

]]> By: burbed http://www.burbed.com/2006/05/26/reversion-to-mean-for-bay-area-house-prices/#comment-443 burbed Sat, 27 May 2006 08:08:25 +0000 http://www.burbed.com/2006/05/26/reversion-to-mean-for-bay-area-house-prices/#comment-443 I think you're right... something is a bit strange... I think you’re right… something is a bit strange…

]]> By: albert http://www.burbed.com/2006/05/26/reversion-to-mean-for-bay-area-house-prices/#comment-416 albert Fri, 26 May 2006 23:14:25 +0000 http://www.burbed.com/2006/05/26/reversion-to-mean-for-bay-area-house-prices/#comment-416 I think there's a basic math error in a calculation on that graph. It says that 20 years of 1% appreciation result in a 20% increase in home prices. That's not how it works. You need to take 1.01 and raise it to the 20th power, which means that an annual 1% rate of appreciation results in asset prices about 22% higher over 20 years. I think there’s a basic math error in a calculation on that graph. It says that 20 years of 1% appreciation result in a 20% increase in home prices.

That’s not how it works.

You need to take 1.01 and raise it to the 20th power, which means that an annual 1% rate of appreciation results in asset prices about 22% higher over 20 years.

]]>