Real Estate News "August 2015"

Falling gas prices can shorten the time it takes a house to sell and can increase the selling price, according to results from an ongoing longitudinal study by Florida Atlantic University and Longwood University faculty. Using data from central Virginia and spanning over 10 years of gas price changes and housing transactions, researchers found statistical evidence to indicate that for every $1 per gallon decrease in gasoline price, average time to sell a property decreases by 25 days. In addition, for every $1 per gallon decrease in gasoline prices the average selling price rises by 2.4 percent, which amounts to roughly $4,000 per sold property in the study. The good news from the seller’s perspective does not end there. A $1 decrease is also shown to increase a seller’s chances of selling and closing by roughly 20 percent. “In the event of a forced sale, these odds are very welcome news for a seller who might already own a second property and must close,” explained Ken Johnson, Ph.D., a real estate economist and an associate dean of graduate programs and professor in FAU’s College of Business. Based on these findings, the immediate future looks bright for home sellers. Gas prices are down nearly $1 from where they were a year ago, and prices this summer are expected to be the lowest they’ve been since 2009 “due to stabilizing crude oil costs and as refineries complete seasonal maintenance,” according to the American Automobile Association (AAA). Source: PR Newswire

Fifteen Republicans are fighting for their party’s nomination for president in 2016. The Democratic seekers of the White House so far number five. All 20 of these possible presidential candidates have divergent policy positions, even within their own parties. But one area that all generally agree on is that the tax code is too complex. Another tax issue that also seems consistent across most major candidates is that a tax break for homeowners is safe. Even this election cycle’s biggest booster of the so-called flat tax, Sen. Rand Paul, R-Ky., says in his proposal that he would continue tax deductions for charitable donations and interest on home loans. The numbers make it clear why homeowners get such attention. Although Commerce Department data show that homeownership for the first quarter of this year was at its lowest level in 20 years, most of us still own the places where we live. Almost 64% of Americans own their homes. So while weakened, the American dream of a yard for the kiddies and a home loan that offers a tax break persists.Source: BankRate.com

A recent survey shows that consumers saving for a home are willing to forego modern conveniences in order to secure a down payment. That may even mean giving up phones, Internet, cable TV, or Starbucks, according to a newly released survey by the business advisory firm the Collingwood Group. Potential first-time home buyers are making such sacrifices because they want to be able to make a sizable down payment on their home purchase. Nearly two-thirds recently surveyed say they’d like to put 20 percent down or more on their home purchase. First-time home buyers are increasing their ranks lately, with their share in the housing market rising to 32 percent in May. That matches their highest share since September 2012, according to the National Association of Realtors®. A year ago, first-time buyers represented 27 percent of all buyers. The survey showed that around 62 of potential first-time buyers are making plans to purchase a home within the next two years. In addition, more than two-thirds of consumers – 68 percent – who say they’re looking to purchase their first home say they want a move-in ready home, while one-third said they’d buy a fixer-upper. Source: MReport

As always, if I can ever help you, your family or friends with any real estate needs, I’d be delighted.

• Amir Vahdat | Broker
  p: 949-682-9090 f: 949-499-1414
  e : amirvahdat@bhhscal.com
• w: www.OCLuxuryProperty.com

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