I'LL TAKE THE BLUE ONE.......

A TALE OF TWO CITIES:

THE OUTCOME 30 YEARS LATER IS THAT ONE NEEDS TO INVEST IN THE RIGHT MARKET(S) OVER TIME AND TO AVOID THE WRONG MARKET OVER TIME.

There is NO SUCH THING as a NATIONAL MARKET and therefore individual markets do not behave in lock step with other regional, municipal or neighborhood markets.

• Bubble-proof markets 27 Oct 2006
• WHY THE WSJ GETS IT WRONG, AGAIN 6 Mar 2007

In the October, 2005 issue of Money Magazine Columbia University professor Chris Mayer calls San Francisco (and a few others) "Supercities" stating, "To be a supercity, you need two things: limited ability for new construction and big demand. San Francisco is the extreme example of a supercity: Since 1940, housing prices have increased 2.1% more each year than they have in other cities. These cities are simply attractive places to live for high-income people to live."
His conclusion: that despite the recent boom, prices in most big cities have remained in line with long-term trends.

Housing Bubble and Real Estate Market Tracker from SA for 5/2