> abstracting for analytical purposes, couldn't you just use the
> assumption that house prices will rise at the rate of inflation,
> which is their long-term path?
Sure, unless there's a significant divergence (which pretty much sums up the last 15 years, in both directions) ... and unless the average homeowner owns a house for, uh, the long-term. Which they don't. Congrats, you just proved my granny right: apples *are* redder and smoother than oranges!
/jordan