First, I would tell you to relax a little. You chose wisely when you decided to invest in San Carlos. No real estate investment is a sure-thing, but you hedged your bets considerably with your purchase in SC. Many buyers go through a period after purchasing where they believe they paid too much for their home. Now, I don’t know what home you bought, or what you paid for it. If you wanted to email me directly with that info, I would be happy to give you a more thorough opinion. There were a few sales prices that raised some eyebrows last year….but not many.

As to the second part of your question regarding a 5% increase, I would bet you get it in the next 12-18 months. The San Carlos market went up in value last year, and I cannot see why it would suddenly lose steam for 2008, given the high demand, low inventory and low interest rates.