tg, that’s the main reason I mentioned those 2 names. When both camps are saying inflation and high interest rate, I listen very carefully.
Regarding home price, I still think, regardless of what happen to the interest rate over the next several year, we’ll return back to fundamental and probably will undershoot on the way down just as it overshoot on the way up. Fundamental to me is rent. So, when my monthly mortgage make sense compare to renting a similar place, then it would be a logical time for me to buy and hold for a long long time. So if rates goes to double digits, I wouldn’t counting out returning to mid 90s price unless wage inflation also adjust with goods inflation. Which would then bring up the rent and we might not see any drop in RE price at all, but then we all would be making $200k, so a $500k house doesn’t look so expensive anymore.
