BobS, I hadn’t thought about the effects of inflation until you mentioned it … especially after we got off the gold standard. Since buying a house is a hedge against inflation, I would guess that it could affect the fundamental valuation of a house. I can see why the GRM might jump from 0.4 to 0.5 in high inflationary periods. But I don’t understand why it would stay at 0.5 for 25 years after that while inflation eased. I’m still thinking this one over.
