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Originally Posted by tryan
I've tried lots of inflation adjusted tracking methods for RE ... none ever materialized into reality. Future RE supply and demand have little to do with anybody's spreadsheet.
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The OFHEO tracks every region of the country. Some areas do appreciate faster than inflation. Most of them don't. There are a few things that are obvious to me:
1) Nothing in the last few years happened to increase the demand of housing on a national (or international) scale.
2) Wages didn't grow much faster than inflation in the last few years.
3) Prices can't grow to the sky. They are rooted in supply, demand, and wage growth.
4) Supply is up, demand is down, credit is tight. The top is in.
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