Perry –
Can you elaborate on expectation of 2001-2002 prices, followed by a decade of stagnation ? What scenario are you assuming for inflation.
If I read you correctly this means that you expect to see the same prices in about 2018 that we had in 2001 (assuming 2 years from now to initially hit bottom). Do you really expect this ? I find this not only implausible, but bordering on ridiculous.
According to Rich’s charts, the median home price to income ratio was BELOW the long-term average in 2001. If they are at that level 17 years later they would be off the charts, assuming any inflation at all.
