My point was that prices will fall to where they’re going to fall and they’re not going to adhere to a scientific formula. The economy, inventory of homes for sale, affordability, availabiliy of mortgage money, public trust in the housing market, etc. will determine the level that prices will fall to. They may be 2003 prices or they may be 1995 prices……………..nobody knows because this bubble is different in so many ways from past bubbles.
I am not the one that put out there that prices may fall to 1998 levels, even without accounting for inflation, not me.
My point was to point out in stark terms exactly what your statement means. 1998 prices = 1991 prices. Even at historically low levels of inflation, over that period of time inflation matters and is significant. Back then a gallon of milk was about $1.25. It’s basically the same gallon of milk, so why is milk $3.50 a gallon (or more) today. Milk is not more desireable today than it was 10 or 15 years ago. I know that everybody wants to buy some, but still, it’s the same milk.
