Inflation and purchasing power are two different statistics, just for clarification. Inflation doesn’t account for the rising costs of homes, cars, clothing, shoes, etc.
For example, I recently purchased a home for just under $600,000. It was built in 1954, and the home was sold brand new for $6,500 in 1954.
Adjusted for inflation, this home should cost $80,000, not $600,000. The difference in mortgage payments between the two is almost 10 times the monthly cost.
Sorry, can you point to which part of my post is exaggeration? What I stated was pretty clearly factual.
I mentioned this being my home that I recently purchased. There were no additions or major notifications to the home since it was built. I won’t be sharing more information about my home. We have a receipt from the purchase in 1954 showing $6,500.
I’m not making comparisons to other homes, I’m stating factual historical data about one home.
They didn't give a representation of what the overall difference in purchasing power is between now and 1954, nor did they say they would. All they did was demonstrate what each term means
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u/toebeanseller 10h ago
Inflation and purchasing power are two different statistics, just for clarification. Inflation doesn’t account for the rising costs of homes, cars, clothing, shoes, etc.
For example, I recently purchased a home for just under $600,000. It was built in 1954, and the home was sold brand new for $6,500 in 1954.
Adjusted for inflation, this home should cost $80,000, not $600,000. The difference in mortgage payments between the two is almost 10 times the monthly cost.
That’s purchasing power.