Yes, but demand for Real Estate is local for the most part and local demand is support by currency that is earned locally. If the dollar declines in value against other currencies it doesn’t mean there is simultaneous wage inflation which is what supports RE purchase fundamentals.
Infact, even though the dollar has been declining, wages have been stagnant. This doesn’t support Real Estate appreciation, which is directly correlated with local wages.
I agree mostly with your assessment. Particularly regarding wages which have stagnated since about 2005. But, there was a considerable improvement in wages from 2000-2005, (a 28% increase in median family income in San Diego for example according to the census bureau). But not nearly enough to keep up with housing inflation.
So a reasonable interpretation by the author would suggest that some fraction of the price increase was justified by dollar deflation (and subsequent wage increases), but not the whole enchilada.
I just wanted to point out that there are some reasonable assumptions from which the author jumps to the wrong conclusions. I like to take the facts and dissect to find out where the author went wrong, rather than provide the knee-jerk reaction comments which are prevalent above.