(01-21-2009 10:36 AM)bitcruncher Wrote:  Which is the easier purchase?
A. $8000 house in 1959
B. $200,000 house in 2009?

Anyone who answers B is a moron...

Taking into account the ease of today's credit markets (at least as of 12 months ago) now compared to then, you could make the argument that B is the answer. A few years ago, I had moved to Atlanta on a 3-6 month contract and was pre-approved for $280k (that was the highest I would even consider, but sensed they would've substantially more, as stupid as that would have been), all in spite of the fact that we had not sold our house in Dallas.

The same credit market both distorts the answer to your rhetorical question is also partly responsible for the appraisal on your parents home.

None of which is to say your point isn't valid. The CPI indicates $1k in 1969 is $5800 in 2008 dollars, $8k in 1959 is about $58k now.