Real Estate, the Bargain of the Century?

So says analyst Dick Bove of Punk Ziegel in a research note released this morning (bold is mine):

Every study I have read is convinced that housing prices will continue to drop for an extended period. This is as dead wrong as the reports that argued some years ago that housing prices would keep rising for an extended period. Think of this:

• Money supply is growing rapidly;
• Commodity prices are soaring;
• The dollar is falling sharply; and
• Real estate prices are falling.

Does this last line make sense? When was the last time real estate prices fell in a general period of commodity inflation?

I cannot think of such a time. I live in Florida where foreigners can and are buying prime real estate at deeply depressed prices with very, very cheap dollars. This may turn out to be the bargain of the century and I mean century.

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