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bubblesitter
2012 Jun 26, 12:51am
There's hardly anything to buy right now. What a weird market.
There are plenty of multi million $ mansions on sale,if you are interested!
zzyzzx
2012 Jun 26, 1:34am
It starts in 1970 but I believe $140,000 starting in 1967
$140K in 1967? Are you sure that's not supposed to be 40K instead? And that would be for a big house in 1967. That's what my parents paid for a 4 bedroom house in 1969 near the beltway (AKA Permieter Hwy) in metro Atlantia.
APOCALYPSEDUCK is Shostakovich says
It starts in 1970 but I believe $140,000 starting in 1967
$140K in 1967? Are you sure that's not supposed to be 40K instead? And that would be for a big house in 1967. That's what my parents paid for a 4 bedroom house in 1969 near the beltway (AKA Permieter Hwy) in metro Atlantia.
If the homeowner isn't insulted by your offer...you didn't bid low enough!!!
It is 22k. I checked.
The 140k is inflation adjusted
APOCALYPSEDUCK is Shostakovich says
The adjustment is wrong.
Houses were reasonably priced in 1967.
What is 22k adjusted for inflation in 2012 prices?
APOCALYPSEDUCK is Shostakovich says
Who cares? All the inflation models are designed by gangster fucks that live and die to make debt seem like something less than the horror it really is, figuratively the Zyclon B of family finances.
I've met quite a few people that believe inflation is understated, but not too many that disregarded it completely.
Do you get shocked at the price of food everytime you walk into a grocery store too? Or were they only reasonably priced in 1967 as well?
But I guess if you're hoarding guns and growing your own food, inflation can be ignored.
tatupu70
2012 Jun 28, 3:32am
APOCALYPSEDUCK is Shostakovich says
If you factor in the household medical health premium, tuition - even at state universities - and housing, yeah, official rates are kind of a joke.
Those are factored in.
freak80
2012 Jun 28, 3:33am
Those are factored in.
Yeah right. The gov't has a HUGE incentive to understate inflation.
tatupu70
2012 Jun 28, 3:35am
Those are factored in.
Yeah right. The gov't has a HUGE incentive to understate inflation.
Be careful--you're approaching tin foil hat territory. Do you disbelieve all government numbers or just inflation?
tatupu70
2012 Jun 28, 3:58am
APOCALYPSEDUCK is Shostakovich says
the whole house number? or just mortgage?
the whole ship the kid off to live without working an under the table job far away number? or just tuition?
The stuff used in those calculations is nowhere near reality.
So, you don't know the methodology, but are sure that "the stuff used in those calculations is nowhere near reality"?
freak80
2012 Jun 28, 4:01am
Be careful--you're approaching tin foil hat territory. Do you disbelieve all government numbers or just inflation?
I don't blindly believe anyone who's trying to sell me something. Do you?
tatupu70
2012 Jun 28, 4:03am
Be careful--you're approaching tin foil hat territory. Do you disbelieve all government numbers or just inflation?
I don't blindly believe anyone who's trying to sell me something. Do you?
Nope. I would agree if you said that inflation is hard to calculate accurately. Or that the substitutions used by the government are sometimes debatable.
But to infer that the government purposely doctors the official inflation numbers is getting out there.
freak80
2012 Jun 28, 4:41am
If you consider that college used to be optional but is now a necessity (unless you want to spend your life making minimum wage) that's huge. And if healthcare costs aren't skyrocketing, why are so many demanding socialized medicine? And in some parts of the country, housing costs are still crazy relative to incomes (Boston, NYC, DC, SF, LA).
It really seems lately that house prices are inflated more than they were say.. 30 years ago when our parents owned. So I'd like to do some number crunching to see if this is true.
Case Shiller Index, past 100 years.
http://www.multpl.com/case-shiller-home-price-index-inflation-adjusted/
The Case shiller index gives a decent overview of the economy over the past 100 years. However, I find flaw in using an average line in determining where home prices should trend towards. A lot of crazy world changing events have happened in the past 100 years. 2 world wars, great depression, numerous life altering inventions (A/C, Computers, Car). Therefore I'd like to take a look at a graph that starts a bit more recently.
http://www.jparsons.net/housingbubble/
This guy gives a chart, and a trend line, starting around 1970.
Now let's compare it to the great income chart that is currently on Patrick.net
The inflation adjusted income chart shows an increase from $41,000 to $50,000 from 1967 to 2012. An increase of 21.95%
For the middle link on house prices, It starts in 1970 but I believe $140,000 starting in 1967 is pretty accurate. So housing increased from $140,000 to $170,000 from 1967 to 2012. An increase of 21.43%
Well, that is pretty anticlimatic. I can draw a conclusion that as of 2012, house prices are in line with earnings over the last 45 years. So in most areas of the US, I shouldn't really complain too much about the cost of a house.
However, what goes up must come down. There are still a few factors that I believe will have the house price graph dip below the trend further.
1. More people own homes now that traditionally do (was it like 64% vs 68%?) This should trend downwards toward the normal.
2. Excess inventory.
3. Very recently wages are trending downward.
#housing