I hope more media types use actual real-life examples, but while we are talking about how they like to apply their opinions to vague, general data, let’s consider the other side of the coin.
Want evidence to explain the red-hot market conditions?
Look at mortgage rates, and how they’ve offset the rise in prices:
The cumulative CPI inflation since 1990 was 79.6%.
Add the 79.6% to the 1990 payment of $1,300, and today’s inflation-adjusted payment would be $2,335 – and we are 24% UNDER that now.
Bernanke is going to be called a hero.
Want more? The population of San Diego County has risen 29% since 1990 too – and apparently a lot of the newcomers were affluent!