Rose Cottage Ltd

Okay, we looked at prices for various things like homes and cars in 1956 earlier this past week.

Here’s a look at what our lives looked like in 1964:

In the 8 year period from 1956 to 1964 there were increases, but they were relatively minor. I guess this is like the old story of the frog. If you put him in a pot of cool water and then turn on the heat, it takes him awhile to figure out that being in the pot is not a good thing.

Average house prices had increased 11.5%, but incomes were up 36.5%. A pound of coffee was the same price in 1964 as in 1956 and even a gallon of milk had only gone up 9 cents. You aren’t going to complain about spending 2 cents more for a stamp when your average person’s income was more than keeping up with basic costs of living. This is NOT the case now.

First we have a whole load of new costs – not the least of which is an ever-increasing tax and “fees” burden. I’d have to check in with my own personal history channel – aka – MOM, but monthly heating and cooling and food bills in the 60’s and 70’s were nowhere near what they are today. Even with a family of 8 to feed, I can guarantee my mother did not spend $200 a week for groceries – and she’d probably be paying a good bit more than that now.

It’s easy to say, “So what? Prices are going up.” Yeah, but why? And why so much? And what happened to that value factor of what you are buying? If a price has gone up 300% is it worth 300% more? Can you find anything about anything you purchase THAT much improved? I can’t.

It seems to me we are suffering a vicious circle – or vicious cycle where prices rise so wages rise so people can buy more so demand increases so prices rise so people need higher wages and on and on and on. I sometimes think a across-the-board freeze on EVERYTHING for a year or ten would be good. Sort of a chance to re-boot the system. It sounds ridiculous at first but I think it would work. Utility companies and communications providers could not keep bumping their monthly charges – a buck here, a buck there. People could actually PLAN and BUDGET since they would have firm figures to work with for a change.

About the only weapon consumers have against ridiculously rising prices is to stop or slow spending. If you don’t buy a $3.30 gallon of gas – and 5 million other people back off as well, trust me, fuel companies would get the message. The last time gas prices shot through the roof, people actually DID put some minor limits on driving and within one week, prices started to drop. Unfortunately, too much of the world has a short attention span and they didn’t realize how much power they really have. Instead, we’re the frog in the pot and the water is always at or just below the “painful” stage!

I’m conducting my own personal protest over prices with my mantra for 2014 being, “I’m not paying that for that.” Doesn’t matter what it is, if the price rises for no reasonable reason, I’m not buying. If the price has risen in a ridiculous manner for the past few years and I can do without, I will. Yes, my car needs gas to run – but it doesn’t mean I can’t plan my trips in a more efficient manner. Anyone out there who is a bit of a control freak as I am will take this as an exciting personal challenge.

And when you think about the state of this country and the US economy, what else CAN we control???

Some really annoying people were shown on House Hunters International over the past week. Or maybe I am just more cranky than usual since pollen has hit North Carolina and half the time I can’t breathe!

People who only want “American” appliances and “American” sized rooms should NOT, I repeat NOT move overseas. Particularly, you should not move to say Paris, or Milan, or Geneva – unless you have a MASSIVE budget. Otherwise, you will be wasting your time looking for what you can’t afford, will annoy the realtor trying to assist you, and will aggravate people like myself – who are wondering what the heck you were thinking???

Now on to some real estate “gossip” for this week…

++ 5 Tips On How To Enjoy Horseback Riding Holidays
For our rural adventurers!

++ Living Off the Grid – What Does This Mean?

++ Want to live in Beautiful Carmel, California?

++ Are Real Estate Brokers Obsolete?

++ Cities where real estate investors are finding deals

++ 17 Most Magical Houses in the World!

++ HGTV Alert! “Flip or Flop” begins new season April 8, 2014!

++ Do It Yourself Real Estate Forms

++ Sotheby’s Waterfront Properties
You know you want to look!

++ Homebuyers getting priced out in cities across U.S.

Can you guess what the hottest housing market is in the US right now? Answer below – no peeking!

++ Las Vegas

I guess the rest of the question would be “Can You Take In One Lifetime?”

“Nostalgic?” How about nearly sickening???

For the moment let’s ignore the fact that Richard Nixon was Vice President and just look at the cost of these items in 1956. I picked this year because it is the year I was born, ergo, my lifetime. I think I’ve had enough already – and I (knock on wood) have a couple more decades of “change” to survive!

My mom gave one of these to each of her six children as Christmas gifts one year. I thought it was a nice idea until some of us started comparing prices. I’m the eldest and my brother, born in 1964, is the youngest. We’ll have a look at his birth year’s costs in a day or three.

My point is that from what I remember about costs when I got out of high school and started working in 1974, NOTHING could have prepared me for what things cost now – 40 years later.

In 1956, a new house could be purchased for under $12,000. The house my family purchased even in 1966 only cost $17,000 – and it was 3 bedrooms, 2 baths, about 1600 square feet, on a half acre of land. During the housing “crisis” when prices started to skyrocket, I did some research on that same house. The “valuation” – since it wasn’t for sale…$220,000. Same house, same street, 40 years later.

My mom and I have some interesting conversations about this since she will be 78 in June this year. In her lifetime prices are up enough to cause the big one but, prices changed less and slower in the 40 years leading up to say 1964 – than they have done in the 40 years since. I’m not sure how some people can afford what they are able to do these days. With vehicles costing 3 times the cost of a 1956 house, who knows what 2054 will bring??? I hope I’m not around to see the 1600 square foot, 3 bedroom, 2 bath house for a price of $2.9 million!

I need to go lie down with a cold cloth on my forehead – and pray I don’t live to be 98!!!