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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: bentway who wrote (51852)	4/11/2006 12:23:30 PM
From: ChanceIs	Read Replies (1) \| Respond to of 306849

>>>why isn't inflation also "booming"?<<< Who said inflation wasn't booming??? Oh. That's right, the government. They have a vested interest in understating inflation ever since Ted Kennedy indexed social security to the CPI. Where there is obvious inflation: Energy: Between 50% to 100% more this year than last to drive your car or heat your home. Same value with a higher price tag. Inflation. Housing: Prices up 50% since 2000?? Some higher. Same value, higher price. Inflation. Medicine/Health Care: Same value (try less) with about 2X the cost over the last five years. Inflation. I know, I know - the "core" inflation is unchanged, and computers - which undoubtedly give one much greater value for way less (Bill Gates notwithstanding) compensate for everything else being up.

To: bentway who wrote (51852)	4/11/2006 1:09:19 PM
From: Dave	Respond to of 306849

To: bentway who wrote (51852)	4/11/2006 1:10:42 PM
From: Dave	Read Replies (1) \| Respond to of 306849

What I don't get is if commodities are "booming", why isn't inflation also "booming"? The inflation aspect is the one conundrum that I have with real estate prices dropping. I have friends that are project managers for high-rise condos in Miami and Tampa. We've had many discussions about the "Bubble". They claim that prices can't drop much because construction costs have sky-rocketed. They say that the "Hyper-Inflation" in commodity prices provides a floor for the condo prices. If buyers want a new construction condo (big if), they can’t expect to pay less than what it costs to build. I personally believe they're all way overpriced and prices have to drop, but it's hard to argue against the cost (inflation) factor.