tag:blogger.com,1999:blog-7905515.post8679674168891086950..comments2024-03-14T11:09:32.759-05:00Comments on Falkenblog: Housing CPI BizarreEric Falkensteinhttp://www.blogger.com/profile/07243687157322033496noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-7905515.post-91329540743258923452011-04-27T19:36:44.694-05:002011-04-27T19:36:44.694-05:00"Gasoline prices are higher now than when oil..."Gasoline prices are higher now than when oil hit $149 per barrel in '08."<br /><br />true locally but not using national averages.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7905515.post-1353386138648386262011-04-27T14:06:45.605-05:002011-04-27T14:06:45.605-05:00How is "food away from home" keeping inf...How is "food away from home" keeping inflation low? Vanilla sundaes at our local McDonald's are at $1.29, up from $0.99 a couple of years ago. Just one example, but I'm sure you'd find plenty more if you look for them. <br /><br />Then there's also the matter of driving "away from home". Gasoline prices are higher now than when oil hit $149 per barrel in '08.Davehttp://steamcatapult.com/noreply@blogger.comtag:blogger.com,1999:blog-7905515.post-83824739993091323542011-04-27T13:32:43.945-05:002011-04-27T13:32:43.945-05:00It's "Owner's Equivalent Rent."
...It's "Owner's Equivalent Rent."<br /><br />To Anonymous #2:<br /><br />It's only "misleading" if you (1) don't understand that they use it instead of a house price index like that the OFHEO, and (2) don't understand WHY they use it. Go to to the specific *.gov website and download/read their papers on the subject.<br /><br />We could argue whether the theoretical idea behind using OER is correct, but it wouldn't do any good to argue that point until you understand their reasoning behind using it, so I won't argue that point at least until I read something that suggests familiarity with their argument for using it. :-)<br /><br />The use of OER instead of house prices is "inflating" CPI currently, i.e., making it appear HIGHER than it truly is (at least for that cohort which is purchasing new housing at the moment).<br /><br />Some bloggers like HoltRitz at the Pic Bigture were complaining for many years (2005-2008) that use of OER was "deflating" CPI at that time. Well, now the shoe's on the other foot.<br /><br />Over the VERY LONG TERM (a decade or more) the OER and the overall price of homes should track together very well.<br /><br />BTW for those that RENT their homes, the use of OER is unquestionably more accurate than using the price of purchased housing stock.<br /><br />It can be argued that, for those who own their homes outright or have fixed-rate mortgages, there IS NO HOUSING COST INFLATION because their housing price is FIXED. Except, of course, for incidentals like property taxes, insurance, and maintenance.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7905515.post-7455386485191617862011-04-27T12:09:27.872-05:002011-04-27T12:09:27.872-05:00To me this just means that housing prices are more...To me this just means that housing prices are more unstable but oscillate around the CPI. I think if you take this back to the early 1990s you will see the same thing.NPHardhttps://www.blogger.com/profile/03758130517298750444noreply@blogger.comtag:blogger.com,1999:blog-7905515.post-84362361094690131462011-04-27T11:03:23.002-05:002011-04-27T11:03:23.002-05:00Doesn't this have anything to do with the misl...Doesn't this have anything to do with the misleading "owner's equivalent of rent" housing component of the CPI?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7905515.post-46038174923924634692011-04-27T09:34:02.828-05:002011-04-27T09:34:02.828-05:00Since when are investors in cash entitled to a ris...Since when are investors in cash entitled to a risk free profit?<br /><br />What a whiner!Anonymousnoreply@blogger.com