<Real estate is a local thing, I doubt you get a crash nationally in that sector.>
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It's rather strange how many people have a death wish now for real estate, bonds, the dollar, stocks, and especially for my 1985 Chevy pick-up truck<G>[See my next door neighbor] ...
It has always been location and scarcity to drive the top of the real estate market, and, as you point out, a little inflation will only put legs under the market.
For those that revel in the prospect for deflation, no one will be the sole beneficiary contrary to what the goldbugs may think.
Nevertheless, if I had to wager where damage will be inflicted in the R.E. market, I would say in "interest only" purchases, and, California has cornered that market.
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