Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: John Vosilla who wrote (31306)	5/16/2005 3:46:42 AM
From: Valuepro	Read Replies (1) \| Respond to of 306849

John, "Logically, would it make sense to compare how home values stack up in a neighborhood to historic multiples of home values to median incomes and rents over time in that neighborhood?" Good question. The answer is YES, and other tools too. I was not meaning to suggest the element of historical trends is not important. As Chief Justice of the Supreme Court, Oliver Wendel Holmes said of one case, "All of value is the expectation of future benefits." And that comes from an examination of the past. The important things about looking at historical trends for projecting returns into the future (or estimating current values) is to limit the research and analysis to very recent data, and hope that one is not making a move just as the projected trend is about to change adversely.