Finally had a nice spring day yesterday, and for a while, it felt like summer, as the temperature hit eighty. I spent the day driving around with four dollar a gallon liquid gold in my gas tank, taking pictures of my listings (finally with no snow heaped around them). These gas prices are ridiculous though, and there is no doubt it will hurt our real estate market, and the economy in general.
I consider myself to be somewhat intelligent, but the how and why of this increase doesn't make any sense to me. In April of '09, the national average price was $2.03. Two years later it is double. There is no way this is because a bunch of Chinese decided to buy cars, or Lybia's production has slowed, or any of the other reasons that are bandied about. No, this extra money is going directly into someones pocket, and for whatever reason, no one seems to know, or is reluctant to say who that is. The media loves a villain. Why are they not showcasing who these people are? Are they OPEC fat cats? Future traders? I really have no clue, and I think most Americans don't. The government seems reluctant to take measures, and I suppose the whole "make it hurt so change can happen" mantra holds some water, but I don't believe we are on the brink of hydrogen, or electric, or ethanol, or cold fusion combustion engines. Something needs to be done.
Anyway, as of right now, it seems to have done little to slow our real estate market. Pretty much every colleague I have spoken to has remarked how busy they are. At first I was a little skeptical, but now things are showing up in the pending section of the mls--some really nice high end homes. Click here to see five of them
It has been a rarity to see this many homes above the 500K mark go into contract around the same time. Now I won't know the final price tag until they close, but most of them have not been on the market that long, I don't anticipate much more than 10% off the ask.
Although I am not a part of any of these sales, (and I have a little twinge when this much good inventory goes away) I am bolstered by the fact that there are high end buyers out there, and they have decided to get back in the market. Hopefully this is a sign of things to come.