How anyone could have thought, in 2006 (and earlier) when this graph was posted, that the practically straight up appreciation line could EVER be sustained, is nuts. Anyone who has lived at all for a few decades and paid even loose attention to real estate could see what was going to happen.
Like many said in 06, it's a simple bell curve, which will revert to the mean (i.e., the green inflation line).
Anyone with an ounce of common sense could see that. It was expressly called in 2006, and the chart has followed precisely as planned. There is no other way it could go. What goes up like that bubble MUST come down the other side, simple bell chart.
Anyone who looked at this chart in 2005/06 and didn't agree there was a major bubble was, simply put, extremely ignorant.
