I don’t buy your argument at all about week doller being bullish.
I think inflation of consumer prices is actually bearish for the housing market (in the short term 1-3 years). Consider these three arguments:
1. Inflation on energy, food, and other necessities takes money out of peoples housing budget and forces them to look for cheaper places to live.
2. Globalization and agricultural advances are keeping costs of necessities somewhat in check. Our dollars are worth less but so are the goods we seek since there is constantly more production (supply) going online worldwide.
and
3. Wage inflation is what really will push houses up. But wages are not rising fast enough and always lag consumer inflation. Besides housing is up so high over fundamentals that inflation would have to soar (super-inflation) to prevent the bubble from continuing to burst in the near term.
Don’t fall for the hype. The level of inflation we are seeing won’t save the housing market. To the contrary it will just excacerbate the forclosure rate 🙂
