Probably depends on the market. In California, holding costs are ~1.5% per year (or less if the home has been held for many years), and purchase prices can cert

Probably depends on the market. In California, holding costs are ~1.5% per year (or less if the home has been held for many years), and purchase prices can certainly fluctuate 5% in a Fairly arbitrary manner. Also, since nearly everyone is leveraged, even a 2% sale price increase will have a bigger effect on return on equity.