Quote:
Originally Posted by workingclasshero
UHM
higher prices (cost of living) is inflation
and as far as housing prices are still way higher than they should be
house here sold in 1994 for 125k...valued today at 380k
the NORMAL INFLATION for housing is 5%..meaning after 20 years that 125k house would NORMALLY be worth 310k...yet after 17 years it worth 380k...its INFLATED....has it DEFLATED from the 2006 PEAK..yes...but still way OVERINFLATED during the last 20 years)
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What counts the direction before the peak or the direction after the peak? When do you have deflation? When the price bottoms and starts going up? Or when the price peaks and starts going down? It was over inflated. The correction is called deflation. Consumer prices are headed higher houses are headed lower. Put your money where it will help you the most.