Energy Price News Affects Drivers and Victoria Groves Homeowner (Rancho Cucamonga, CA)

Energy Price News Affects Drivers and Victoria Groves Homeowner

DiNoto Realty Group 909-921-2544 www.DiNotoRealtyGroup.com Energy Price News Affects Drivers and Victoria Groves Homeowners Just about the last thing homeowners expect is for the price of something we use every day to drop precipitously. It isn t just that we ve grown skeptical about the way official inflation numbers are formulated (although we have). It s simply that when it can cost more than a dollar for a Coke we ve drawn our own conclusions. To quote The Wall Street Journal s front page last Tuesday Basic Costs Squeeze Families. So it s been slightly disorienting to experience what has been happening with energy prices in. It s not your imagination as you drive past the neighborhood gas station the prices on the sign really have dropped nearly 30 a gallon over the past month or so. As December began prices from coast to coast were at their lowest since December of 2010. And home heating oil prices were following suit leaving one to wonder if electricity and natural gas couldn t be far behind. Rancho Cucmonga homeowners should be among the most pleasantly surprised for a number of the reasons pointed out last week by Molly Boesel in an Insights blog titled An Unexpected Windfall. Ms. Boesel is the Senior Economist at CoreLogic and like any card-carrying member of the economists trade was able to draw up a number of graphs and charts to bolster her point which was that lower energy prices might well stimulate housing demand. It s not just that more money remains in drivers and homeowners wallets as gasoline and heating cooling expenses sink. There is another less obvious factor. That factor is VMT (Vehicle Miles Traveled) per capita and there seems to be a strong relationship between it and homeownership rates. The logic is that as prices for gasoline and diesel remain low homebuyers are encouraged to move further and further from urban cores (or wherever their jobs are located) out to where they can buy bigger and more expensive homes. If that sounds like a bit of a leap history suggests otherwise. VMT per capita rose steadily alongside the increase in homeownership rates from 1994 to 2004 after which the trend then reversed from 2005 to 2014 with homeownership rates and VMT per capita falling back to 1994 levels. So the possibility exists that if the present energy price levels remain low (more precisely if future homebuyers believe that s likely) it could incent buyers to again move to larger and more expensive Rancho Cucamonga Home heedless of how far their personal commute becomes. It increases the number of potential Victoria Groves homebuyers. Have A Home To Sell Get Your FREE Market Evaluation Here To Start Your Rancho Cucamonga Home Search Click Here We look forward to connecting with you soon DiNoto Realty Group 909-921-2544 www.DiNotoRealtyGroup.com Cal BRE 01804308 Rancho Cucamonga Real Estate Services Equity Listings Standard Listings Short Sale Listings Trustee Sale Listings Probate Sale Listings Investor Listings First Time Home Buyer Relocation Vacation Homes Second Homes REO Sales Keller Williams Realty Each office independently owned and operated. All information deemed reliable but not guaranteed. Price and availability subject to change without notice.