“Sam, you’re writing about gas prices on a real estate blog?” If you just asked yourself this question, the answer is ‘Yes’… I’m writing about gas because it is part of the real estate trend this summer. According to MarketWatch.com, “The late 2014 gift of lower gas prices (which could act as a $1,000 to $2,000 tax break for middle class families) could carry over into the housing market, at least in a small way.”
In fact, Gas prices fell for 88 straight days between Sept 25 and Dec. 22, according to AAA, to a national average of $2.39, down 85 cents a gallon from a year ago. The savings amount to about $450 million a day for consumers. The oil-price crash of the 1980s brought down real estate markets like Houston, and to a lesser extent, Dallas. Now that gas is not too expensive, we are starting to see an increase in available cash and confidence in varied financial markets. So, what does this all mean for you?
More disposable cash and a healthier gas price simply equates to a better selling price. If you’ve considered selling a home , you should seriously start looking into today’s market and the gas prices that will slightly budge (but not by much) late this summer. You have the perfect environment right now to get what you’re asking. In fact, the last three homes I’ve brokered have gone over asking price- one by $60k!
Interest rates are low. There is more disposable cash in the buyer’s pocket today. The financial concerns of 2008-2010 seemed to have quieted- don’t believe me? Compare today’s gas prices to the gas prices of those years… spot the trend?