The graph below is for San Mateo County, California. Notice how steep the trend-line is for this year as compared to 2004. The trend line used is a straight line computation in which the trend illustrated is based upon the previous data points. Of course this predicted outcome can change radically as market conditions change and in fact we would expect that this level of appreciation (given the current issues in the mortgage industry) is not sustainable and in fact it may be the result of more expensive homes selling in the two previous months–September data points should help level off this trend.


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