Mortgages Today vs 13 years ago

By
Real Estate Agent with Boomerang Leads
  • Today a home may cost $200 more than what it was 13 years ago, but that's not factoring in everything we ought to.  Consider that homes are nearly twice the cost that they were, but inflation has also gone that way and interest rates are better than ever before as well.  Compared with the rate of inflation, a home cost is much much much less today (almost half as much).
  • Nearly every other industry has inflated around 300%, but home prices have risen only 20%, once inflation of the dollar is calculated $1289.67 today is actually $689 in 1989.
What cost $1078, would be over $2000 in today's dollars.  Making homes much more affordable today.

 

  • Or let’s look at it one last way, in 1989 that $1078.28 payment, with inflation calculated on the dollar would actually be $2018 dollars today. Source: US Inflation Calculator
  • In other words, a home essentially costs half as much as what it did just 13 years ago, or $800 less/month.

Source: http://kirksalisbury.com/2012/04/home-value-vs-inflation-and-interest/

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Rainmaker
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John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Alan - Thank you for sharing detailed quality information on mortgages Today vs 13 years ago.

Apr 03, 2012 07:53 AM #1
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Rainmaker
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Alan Barker

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