The Malibu stuff equates to about a 6.5% increase per year over the last 25 years - not exactly earth shattering - but I wish I owned some LOL.
The properties (and market) I spoke of in the analogy were interesting to me because of the parallels you can see developing in MLB IMO.
Not residential premium properties - there are a ton of those all over the US.
I was referring to premium buildings (buildings that sold for huge sums of money - $1 billion plus) in the late 1980's. (The Japanese bought alot of this stuff - and got hammered.)
Cutting to the chase - I think you will see - on an inflation adjusted basis - a very significant decline in MLB salaries in the coming years - relative to where they were just 5 or so years ago. I see this as just about inevitable at this point.
Sorry for the boring business angle - but I find it very interesting - and I think many agents are well aware of this as well. Either way - it is fun to watch the market evolve IMO.
Example: A guy that got $20M (lump sum for this example) 5 years ago - would need to get approx. $25M - just to stay even with inflation (call it 4% per year). I just dont see that happening - and that is for the "premium" guys. The rest of the "non-premium" players have no chance at keeping up with 1990's prior levels IMO.