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To: Eagles Talon IV

Whether there's a national "bubble" depends on the definition of "bubble."

Since RE usually runs a point or two over inflation, and inflation is about 3-4% (depending on which index you use,) a national increase anything MORE than 7% is "a bubble."


122 posted on 08/19/2005 1:44:46 PM PDT by ninenot (Minister of Membership, Tomas Torquemada Gentlemen's Club)
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To: ninenot

I disagree. You have left out of your equation interest rates. According to you if inflation is running 17% then RE prices can go up 19% per year. The problem with that is that if inflation is at 17% you can bet your as* interest rates will be almost as high. Result, a monthly payment that is unaffordable to the greater majority of people.


123 posted on 08/19/2005 2:05:55 PM PDT by Eagles Talon IV
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