Quote:
Originally Posted by Jedi Ninja
The price of a loaf of bread is double what it was in 2004. The FAO food price index is double what it was in 2004. The price of oil is double what it was in 2004. The Bank of Canada Commodity Price Index is almost double what it was at the beginning of 2004. The price of gold is four times what it was in 2004. Money just isn't worth what it used to be.
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Yes I'm perfectly aware of inflation. I'm also perfectly aware of the value and cost of money.
It's also likely a lot of the inflation adjusted items you just commented on are reflective of what's going on in another continent. While there will be some adjustments here too based on labour, materials, etc. I wonder if the ratio to Calgary housing prices is equally reflective of that. Is food in Canada cheaper than it was 20 years ago, or 50 years ago based on real wage growth? How does housing compare?
Alberta average weekly wage:
January 2011 $1,014.00
June 2006 $787.00
Can't find 2004
median income for families in and around Calgary was:
2010 - $122,459
2006 - $82,363
2004 - $77,800
2001 - $76,952
Is 2011 going to be $155,600?
The average apartment rent for Calgary was:
$716 in 2003
$721 in 2004
$970 in 2010
$951 in 2011
Not $1,440.00 in 2011?
Yes, I'm aware interest rates also play a significant roll in the cost/value of housing. All I was saying was $350k for a townhouse in 2008 when the same amount could have bought a really nice SFH in a great community in 2004 is a defeating thought. It's even more defeating when the $350k townhouse is worth maybe $310 - $330 now (yes maybe that SFH could have sold for $800k in 2008). It's also kind of scary that despite my comments about it being defeating, I don't even think $670k seems that expensive. Anyway, I think a lot of people were assuming interest rates would play a roll in real estate prices coming down over the next few years as well a lot of people thinking job growth and oil and gas prices would play a roll in prices going up. It looks like the interest rates aren't going to change much - so it will be interesting to see what transpires over the next 10 years. Interest rates sure are interesting.
Edited to include I did a lot of random searching for these numbers. You might be able to find slightly different ones by finding other publications, reprints, news stories, etc. I just pasted what I had time to find.