(We're not discussing seller financing, below market financing or assumable financing here, that's a whole another discussion vis-a-vis the relationship of value to below market financing.)What the Professor is saying is that real estate values have NOT increased in "real dollar", when you exclude inflation from that equation.Once upon a time, a long time ago in a distant land, the distance measured in a few miles, before the current real estate crash; I discovered several pockets of real estate that were somewhat isolated from market fluctuations in value.

One "shouldn't" bet that this is a sure thing based on appreciation (look at the current housing crash).

Before the housing crash it was also the line for black and white in many neighboring cities on the north border.

Actually, we did start over, after being hit extremely hard when the market crashed.

In one of Malcolm Gladwell's books, he talked about that's how planes crash.

They are prosecuting the real estate professionals but the biggest criminals, the bankers, who benefited handsomely as the bubble inflated and then again when it crashed will never face criminal charges.

Barrier of entry is always high in the Peninsula, but once you get on the train, it is pretty much automatic and crash resistance.  

Both will teach you about real estate and will apply to you as an investor.My partner did mortgage before the market crashed in 2008 and was very, very successful.

I had statistics in college, and I know this you can manipulate numbers in a lot of ways to represent whatever you want.Maybe he's taking out the low extremes in the data and not the highs, things like that.IMHO i wouldnt trust the source.From another point of view, maybe supply and demand is pushing up the prices because of the real estate crash in Las Vegas, Maybe investors are plannin on the real estate to get back to them numbers.

I am young so I never really even cared to pay attention to real estate before the crash.