The SF Chronicle reports on SF Bay Area housing prices.
What he found: In the Bay Area, house P/Es are higher than they were in 1989, just before the last housing bubble burst.
The P/E for Bay Area houses averaged 27.2 in 2001, down slightly from 2000 but still higher than 1989, when it averaged 25.6. In 1993 through 1995, it hovered around 21.
Leamer finds that home values in Boston and San Diego are even more inflated.