3 ms·

I highly doubt you can make these generalized assumptions from the sale of a single house.

• dilemma 10y ago
  Sure, but it can point you in a direction for inquiry. Inflation in the Bay Area is around 20% YoY, based on price increases in the housing market.
  • foota 10y ago
    This pretty much seems reasonable. Housing demand should probably depend mostly on the amount of wealth (maybe this should be income?) in the area. It seems possible that wealth in the valley is growing at 20%.
    • mintyfresh 10y ago
      20% growth would mean the wealth in the area would double every 3.46 years. This morning, it was announced that the US GDP grew at an annual rate of 2.9% last quarter, accompanied by the WSJ headline "US Economy Roars Back" [1]. 20% growth is nowhere near "reasonable". [1] http://www.wsj.com/articles/u-s-economy-grew-2-9-in-third-quarter-1477657992 http://www.wsj.com/articles/u-s-economy-grew-2-9-in-third-qu...
      • dilemma 10y ago
        Inflation, not growth. You get less house for the same money.
      • foota 10y ago
        GDP is a measure of income, not wealth. It makes sense that wealth matters more for house prices than income, because it's a ~ one time purchase.