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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: gpowell who wrote (46815)1/9/2006 9:36:42 PM
From: John VosillaRead Replies (1) of 306849
 
"once the market realized (and expected) that we live in an era of low inflation - housing became cheap."

I would take it as once the market read we live in a reported inflation rate resulting in below market interest rates way below the real rate of inflation it made RE much more attractive.. In the end RE is an inflation hedge and any long term rise is due to rising household incomes, rents and costs of construction. Anything else is financial engineering or socialized programs from our federal government. It should be of concern to anyone to see the broad stock market indexes range bound for six years in this low inflation low interest rate environment with low unemployment.
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