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Rt.66
ParticipantAnother way to look at things:
My national inflation calculator shows 19% inflation from 2002-2008. So if I get 50% off today is that 30% off adjusted for inflation? IE, my dollar was worth 19% more in 2002 when I could have bought a house for say $250k, ($500k bubble price in 2006) than it is today when I pay $250k (50% off bubble price).
If I could go back in time and take $300k with me, my $300k would be worth 19% more in that time; I’m still paying $250k for the house plus… I get the benefit of the left over $50k buying me 19% more goods and services. So I am wealthier in 2002. Thus, 69% off is needed today just to get back to 2002 wealth.
When wages fail to keep pace with inflation (which they have for 20 plus years) then even inflation dictates housing should get cheaper.
ParticipantAnother way to look at things:
My national inflation calculator shows 19% inflation from 2002-2008. So if I get 50% off today is that 30% off adjusted for inflation? IE, my dollar was worth 19% more in 2002 when I could have bought a house for say $250k, ($500k bubble price in 2006) than it is today when I pay $250k (50% off bubble price).
If I could go back in time and take $300k with me, my $300k would be worth 19% more in that time; I’m still paying $250k for the house plus… I get the benefit of the left over $50k buying me 19% more goods and services. So I am wealthier in 2002. Thus, 69% off is needed today just to get back to 2002 wealth.
When wages fail to keep pace with inflation (which they have for 20 plus years) then even inflation dictates housing should get cheaper.
ParticipantAnother way to look at things:
My national inflation calculator shows 19% inflation from 2002-2008. So if I get 50% off today is that 30% off adjusted for inflation? IE, my dollar was worth 19% more in 2002 when I could have bought a house for say $250k, ($500k bubble price in 2006) than it is today when I pay $250k (50% off bubble price).
If I could go back in time and take $300k with me, my $300k would be worth 19% more in that time; I’m still paying $250k for the house plus… I get the benefit of the left over $50k buying me 19% more goods and services. So I am wealthier in 2002. Thus, 69% off is needed today just to get back to 2002 wealth.
When wages fail to keep pace with inflation (which they have for 20 plus years) then even inflation dictates housing should get cheaper.
ParticipantAnother way to look at things:
My national inflation calculator shows 19% inflation from 2002-2008. So if I get 50% off today is that 30% off adjusted for inflation? IE, my dollar was worth 19% more in 2002 when I could have bought a house for say $250k, ($500k bubble price in 2006) than it is today when I pay $250k (50% off bubble price).
If I could go back in time and take $300k with me, my $300k would be worth 19% more in that time; I’m still paying $250k for the house plus… I get the benefit of the left over $50k buying me 19% more goods and services. So I am wealthier in 2002. Thus, 69% off is needed today just to get back to 2002 wealth.
When wages fail to keep pace with inflation (which they have for 20 plus years) then even inflation dictates housing should get cheaper.
ParticipantSDEngineer:
I just found this concerning the Economist/Case-Shiller chart I referenced.
The term “Urban land prices” is misleading as the Japanese report RE values differently than we do. If you check out this explanation of the Japan Urban Land Prices report:
http://www.reinet.or.jp/en/pdf/20081216pdf1.pdf
it appears they look at the value of the land under a house or CR building in reporting (they seperate the value of the building out). So the Case-Shiller chart is not comparing US houses to Japanese raw land per-se. It’s comparing the closest apples to apples report available.
ParticipantSDEngineer:
I just found this concerning the Economist/Case-Shiller chart I referenced.
The term “Urban land prices” is misleading as the Japanese report RE values differently than we do. If you check out this explanation of the Japan Urban Land Prices report:
http://www.reinet.or.jp/en/pdf/20081216pdf1.pdf
it appears they look at the value of the land under a house or CR building in reporting (they seperate the value of the building out). So the Case-Shiller chart is not comparing US houses to Japanese raw land per-se. It’s comparing the closest apples to apples report available.
ParticipantSDEngineer:
I just found this concerning the Economist/Case-Shiller chart I referenced.
The term “Urban land prices” is misleading as the Japanese report RE values differently than we do. If you check out this explanation of the Japan Urban Land Prices report:
http://www.reinet.or.jp/en/pdf/20081216pdf1.pdf
it appears they look at the value of the land under a house or CR building in reporting (they seperate the value of the building out). So the Case-Shiller chart is not comparing US houses to Japanese raw land per-se. It’s comparing the closest apples to apples report available.
ParticipantSDEngineer:
I just found this concerning the Economist/Case-Shiller chart I referenced.
The term “Urban land prices” is misleading as the Japanese report RE values differently than we do. If you check out this explanation of the Japan Urban Land Prices report:
http://www.reinet.or.jp/en/pdf/20081216pdf1.pdf
it appears they look at the value of the land under a house or CR building in reporting (they seperate the value of the building out). So the Case-Shiller chart is not comparing US houses to Japanese raw land per-se. It’s comparing the closest apples to apples report available.
ParticipantSDEngineer:
I just found this concerning the Economist/Case-Shiller chart I referenced.
The term “Urban land prices” is misleading as the Japanese report RE values differently than we do. If you check out this explanation of the Japan Urban Land Prices report:
http://www.reinet.or.jp/en/pdf/20081216pdf1.pdf
it appears they look at the value of the land under a house or CR building in reporting (they seperate the value of the building out). So the Case-Shiller chart is not comparing US houses to Japanese raw land per-se. It’s comparing the closest apples to apples report available.
ParticipantSDEngineer:
That chart is of questionable origins don’t you think? Its a bubble bloggers homemade chart from what I can see. Still, nationally it even shows Japans price run up was worse than ours.
Our RE bubble certainly includes land and also CR just like Japan’s bubble did. So if we could find a US chart that shows just land I’m guessing we’d have the a similar chart to the Economist’s chart.
ParticipantSDEngineer:
That chart is of questionable origins don’t you think? Its a bubble bloggers homemade chart from what I can see. Still, nationally it even shows Japans price run up was worse than ours.
Our RE bubble certainly includes land and also CR just like Japan’s bubble did. So if we could find a US chart that shows just land I’m guessing we’d have the a similar chart to the Economist’s chart.
ParticipantSDEngineer:
That chart is of questionable origins don’t you think? Its a bubble bloggers homemade chart from what I can see. Still, nationally it even shows Japans price run up was worse than ours.
Our RE bubble certainly includes land and also CR just like Japan’s bubble did. So if we could find a US chart that shows just land I’m guessing we’d have the a similar chart to the Economist’s chart.
ParticipantSDEngineer:
That chart is of questionable origins don’t you think? Its a bubble bloggers homemade chart from what I can see. Still, nationally it even shows Japans price run up was worse than ours.
Our RE bubble certainly includes land and also CR just like Japan’s bubble did. So if we could find a US chart that shows just land I’m guessing we’d have the a similar chart to the Economist’s chart.
ParticipantSDEngineer:
That chart is of questionable origins don’t you think? Its a bubble bloggers homemade chart from what I can see. Still, nationally it even shows Japans price run up was worse than ours.
Our RE bubble certainly includes land and also CR just like Japan’s bubble did. So if we could find a US chart that shows just land I’m guessing we’d have the a similar chart to the Economist’s chart.
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