Recently on a few blogs around town, there was a mention of the Prestige Home Index, and there was (is) continually a hullabaloo about declining home values in California and the nation. Here’s the graph:
Forget for a minute the exact parameters of this graph and assume it is an average depiction of home price increases since 1985 (basically don’t look at the prices on the left). You have to agree, you can pretty much pick your price range and it is a decent indicator of home values, in general, in California. (For California Median Prices since 1968, you’ll see these charts match up pretty well.)
Now the fun part…can someone please show us a legitimate graph of home values for San Francisco, or the Bay Area, or California, or the Nation, hell you might as well make it the world for that matter, that looks like this?
Here’s a hint: Ask your parents or grandparents what they paid for their first home.
–About the Prestige Home Index [FirstRepublic.com]