SDNative agree completely with you. I think the inflation numbers are so incredibly hard to capture. I was toying with going through my own personal and business records to see how much “inflation” I have seen over the past few years based on grocery costs, SDGE costs, gas costs, and a few other things. I bet that I will see at least 10% but maybe that is just me being cranky.
For sure I am 100% agreed we will see a further depreciation in real housing costs, (excluding inflation)… Of this there can be no rational argument. I am especially fearful of the second wave we will see in the next few years. Perhaps that is how they came up with the 47% number. Perhaps they project a given percentage of those loans not to perform and thus become inventory and press down the market.
