And as to whether the fall of the dollar leads to rising interest rates, yes I am all with that concept too (as is Peter Schiff). I have been looking at TONS of rentals in the Carmel Valley / Torrey Highlands area over the last few weeks (over 30 of them). I cannot tell you how many of them are becoming vacant because the tenants just bought a house (granted a huge amount of them are homes being taken off the resale market, but it has been noticeable the # of tenants now becoming homeowners that I have run into). In addition to my house selling, two homes in my neighbourhodd just sold this past week (Torrey Highlands area off the 56). I see continued home buying all around in the Carmel Valley / Torrey Highlands area where I have been looking for rentals. IMHO it will only be when interest rates go up (and go up signficcantly if you follow the Peter Schiff philosophy) that this tide will turn. The only issue is that people keep rushing into the 10 year T-Note and mortgages are staying somewhat restrained as a result…so who knows when that day will come.
