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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Tradelite who wrote (16042)	1/15/2004 1:36:35 PM
From: GraceZ	Read Replies (1) \| Respond to of 306849

If I were to follow your method for "valuation" it wouldn't be possible to determine whether or not I could expect to receive an acceptable rate of return on my real estate investments but history shows this method to be reasonably incorrect. Periods of above average rates of appreciation are followed by periods of below par returns. It would be foolish indeed to extrapolate the recent trend to the sky, it is far more reasonable to expect the trend to revert to the norm. I prefer to make money based on people coming back to rational expectations rather then continue indefinitely to hold irrational ones.