No_such_reality on April 23, 2007 – 11:09pm. Wrote:-
At $1.3M sale today, is basically a wash with inflation to the 2002 sale.
At $1.3M today, it represents about a less than 1% above inflation from 2001. At $1.4M represents about 2% above inflation from either 2001 or 2002.
Inflation from 01 is nearly 0. That is reflected in the interest rates for loans at 5-6. Interest rates are essentially Inflation + 5% really. That is one reason why mortgage companies push adjustables and what not. If the rate of inflation goes up a fixed rate lender is shafted. An ARM lender will just pass on that extra cost to the owner … ha … owner … borrower.
Inflation is negative without oil and utilities and construction materials taken into count. Rememeber what things used to cost in 01-02. What did a VCR or a DVD player cost. What did food and essentials cost.
basically we have used a lot of fuel, a lot of wood and a lot of other building supplies to drive up cost of living from 01 to now. The rest of the things you need for life are lower than 01.
Cool.
Cow_tipping.
