Buying a house based on technical analysis

This is probably a bit of stretch as there are many other factors in buying a house. However, my technical analysis philosophy really helped me buy our house recently. The reason I wasn't trading much this year was that I was pre-occupied with buying and selling my home.

We sold in Michigan for a profit, which was not bad considered we bought in 2007 just as the market was crashing. So it was at a loss for 95% of the time we owned it.

Here's the price graph from Zillow with the buy and sell. Selling was a bit of luck and a lot of hard work, as we spent a lot of hours staging it perfectly to sell.   Five offers in 24hrs all over asking price.... luck or not?

On the other hand, our purchase in Vista, California was based on the same graph, but from the technical analysis perspective, buying into a solid rising trend after multiple lows had finally signal led a bottom to the post financial crash market. I was very focused on using the window of opportunity that the graph indicated, before prices rose so much that we were priced out of the market.

 We paid a little on the high side - a little above the trend line as you can see in the graph below, as it was a rising, sellers market. But according to Zillow, values in our new neighbourhood will rise 8.7% next year so it seemed worth the risk. Plus, this home is a long term investment....

Actually, based on return of investment from the downpayment we made, 8.7% translates to  projected 32% profit in a year. Welcome news after five years of torture from the economic crisis. Not that we are selling, it's our dream home in a dream part of the world....