I just did a quick graph based on available NZ data using an index of 100 and a base year of 1962.

From 1962 to 1972, no growth above inflation.
From 1972 to 1974, growth to 174.
From 1974 to 1980, the index falls back down to 100.
From 1980 to 1992, growth to 110.
From 1992 to 2001, growth to 150.
From 2001 to 2008, growth to 272.

The curve then begins to fall sharply. AS at Q3 2008, its at 240.

Here's an interesting link I came across today:

http://www.howtosellyourhouse.net/value.html

Its an American site, but the concept is interesting in that it is based on a historical price to earnings P/E ratio for houses, being about 15%.

You enter a realistic (monthly) rent, and it calculates a realistic price for your house.

Multiply the weekly rental returns by 600 for a poorly maintained house in a bad street. For a well maintained house in a good street, multiply the weekly rental return by 800. This is the right price for the house. The above thumb rule works very well. There are always exceptions such as a house having subdividable land etc.

forgive me if i'm an idiot, and this is already possible -- could we get the URL to the original graph, or make the image clickable to bring up a bigger copy. Yes, I wear glasses and i'm proud..