Bubba – Several good points, especially the following … I have not seen anything yet that ties R.E. prices to the “value” of the dollar. If the dollar value is declining on the world market, then asset prices in dollars should increase – much like stocks and other hard assets do as the dollar declines – in theory. If this is true then we should be seeing a 10% increase in R.E. due to currency offsetting bubble declines.
This is why I don’t understand why people who are bearish on real estate, economy, and the US dollar think that weakened dollar and ensuing inflation won’t reduce the depths of a real estate collapse. If we have significant inflation, coupled with a weaker dollar, why won’t the the value of hard assets (RE included) tend to hold their value ?
