Historically, in high inflation environments the price of hard assets goes up. Real estate is a hard asset. So is gold.
If the current dollar decline results in increased inflation, I would expect that the remaining 30-40% or so price decline in San Diego could consist of half due to inflaiton and half due to nominal price declines.
What leads one to conclude that a declining dollar and rampant inflation would put downward pressure on real estate prices. I do not understand the logic of those who hold this view. Is there some sort of mass cognitive dissonance going on ?
