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When you’re house hunting, it’s good to know your “living personality.” The home you choose should reflect the way you like to live rather than the latest trend in home design. If you are a minimalist at heart, you may be looking for something different from the average homebuyer.

What is a minimalist?

Minimalism isn’t about owning a very small house, although it can be for some, and it isn’t about getting rid of everything and eating and sleeping on the floor. What it is about is getting rid of (or not acquiring) the excesses that can clutter our lives and cause us to be discontent and overwhelmed. While some people tout “rules” for how much a minimalist can own or how big their home can be, true minimalism is a mindset about what makes us happy versus what just litters and disorders our lives.

Minimalist living is an aim to living with what you need, but not with what consumerism and advertisements tell you that you should want. It’s not about being frugal; it is about quality over quantity. It is about making choices.

Are you a minimalist?

You might be a minimalist if

• Clutter makes you uncomfortable or irritated.
• You hate the junk drawer.
• You give stuff away every chance you get.
• You’ve considered buying a tiny house.
• You’re attracted to minimalist architecture.

What is minimalist architecture?

In the design world, minimalism is about simplifying and paring down the design elements. Often used in Japanese design and architecture, minimalism is a design aesthetic that seeks to achieve simplicity. Using basic geometric forms, simple materials and natural light, minimalist architects design homes with clean, open lines, natural wood, stone, glass and other fundamental components.

Can you be a minimalist in a traditional home?

While you may be naturally drawn to minimalist architecture, most homes, particularly in neighborhoods or associations, do not fit into the minimalist design aesthetic. A traditional home may be the perfect option for your minimalist lifestyle. Simply adopt these concepts when decorating your new space:

• Window coverings: to keep your space minimalist, simplify your window coverings. Leave windows bare, where possible, or use wood blinds or cellular blinds that sit inside the window opening.
• Furniture: Choose fewest pieces possible without sacrificing comfort and utility. Forego ornate or heavy pieces in favor of simple, clean lines and solid colors.
• Floors: Consider wood, tile or stained concrete floors.
• Artwork: Simple art objects or accents that draw the eye can add a dash of color to a basic room. Keep knick-knacks to a minimum.
• Organization: Forego the junk drawer, but have a space out of sight for the items you need to keep. Except for those that require hard copies (birth certificates, diplomas, marriage licenses) store “paper” items on your computer or in the cloud.
• Landscaping: Choose native plants and hardscape to minimize the amount of upkeep your property requires.

Finding a minimalist home

If we know what you’re looking for, we can help you find the perfect home for your minimalist lifestyle. As real estate professionals, we know what is available in our area, and what you can do to make it fit the aesthetic you’re looking for.

Compliments of Virtual Results

With several more weeks of winter to go, you might be hankering for some fresh greens, herbs or sprouts in your diet. Changes and improvements in lighting, soil and planting techniques mean that you can grow lovely plants in your home year round. You can have a simple herb garden or an elaborate hydroponic system.

Container gardening is a collection of pots, jars, boxes or other containers that can hold a plant medium (soil, commercial soil-less mixtures, sand, bark or mulch). The medium supplies the plant’s roots with nutrients, moisture, air and physical support. Hydroponic or aquaponic gardening uses fertilized water (sometimes including live fish) as the growth medium.

9 indoor garden ideas:

Here are a variety of indoor gardening ideas. Add one to your décor and give your home a much-needed lift in the winter months.

• Terrarium: you can create a terrarium in a jar, hurricane lamp or unused fish tank.
• Force bulbs: Tulips, amaryllis, hyacinth, narcissus, crocus and other bulb plants can be “forced” to bloom indoors in the winter.
• Simple terra cotta pots: Start your herbs in small pots on the windowsill. In the spring, you can transfer them outside.
• Rock garden: Grow succulents or parasitic plants on a rock. Since they don’t need soil they can live for months with periodic watering.
• Hanging planters: When space is limited, hang planters on the wall or from a hook in the ceiling. A variety of options can be found at retailers like Home Depot.
• Mini greenhouse: For herbs, cherry tomatoes and other hothouse plants, try a mini greenhouse like this one at IKEA.
• Potted citrus trees: Grow you own oranges, lemons, limes or cumquats in an indoor pot and add some homegrown vitamin C to your diet.
• Mason jars: Set mason jars in the windowsill or shelf and grow simple herbs like rosemary, cilantro and basil.
• Plant table: Buy or build a garden table for your living room. A plant table is like a box with legs. You can plant directly into the box, or fill it with small pots.

Succulents are great for indoors, you can check The ultimate guide to grow and care for watch chain succulent in your garden to take care of them like a professional.

Environmental control

If you don’t heat your entire home throughout the winter, consider a soil heat mat for your garden. Sort of like a heating pad for your plants, the soil heat mat keeps the soil warm from underneath. Most plants thrive best at about 75-85°F and a heat mat will keep the soil at the perfect temperature.

Automatic watering systems can keep your plants moist even if you forget. The same as an outdoor drip system, a series of tiny tubes supply water on a timer system. A simpler and more mobile option is the use a watering globe. Typically made of hand-blown glass, you fill the globe with water once a week or so, place it tube side down into the soil and it keeps the soil moist. Homemade water globes (from wine or glass soda bottles) will work as well.

Finally, consider the light. If you don’t have a well-lit window, or if you’re winter days are often overcast, consider a grow light. These come in a variety of intensities and sizes. A gardening shop can advise you on the best light for your situation.

If you’re selling your home in the winter, simple indoor plants can add cheerful appeal for potential homebuyers. We can advise you on the best way to include plants when staging your home for an open house, so contact us today and let us get started.

Compliments of Virtual Results

Many buildings tout themselves as live-work spaces, but live-work designations are not all equal. For example, a primarily residential building that has no restriction on working from home can be called a live-work space but it is hardly comparable to a building that allows you to have employee, walk-in customers or clients, public access parking, or locations that allow more hazardous or noisy commercial activity.

Planning and zoning regulations differ in live-work or work-live spaces compared to those that are primarily residential, but do not restrict a home occupation. Typically, these locations are part of an urban renewal between the industrial and residential parts of a city. Creating lifestyle lofts that include workspace, or work space that includes living areas can be a strong part of a vibrant mixed-used development district. Reuse of historic structures that would otherwise be allowed to decay through vacancy typically enjoys some relaxation of the standard residential building codes under state and municipal laws in many areas as long as they are inspected by structural engineering experts. However, new construction live-work spaces usually must adhere to residential codes, including the impact on local school districts.

Who lives in live-work properties?

• Artists: the phenomenon of live-work properties started in the artist communities when artists and musicians could not find workspace they could afford and so chose to forego personal space and live in their workspace. Many urban centers offer so-called “Artists’ Protection Zones” that impose certain restrictions on rent increases to keep space more affordable for artists.
• Start-ups: live-work spaces often appeal to entrepreneurs that see their space as an incubator of new ideas. They want to be close to their work so that living doesn’t interrupt the development of their business ideas.
• Virtual or telecommute employees: unlike artists and entrepreneurs, employees that connect to their place of work via the Internet may find that live-work properties have better access to high-speed Internet that other residential areas. With Google Fiber WiFi extender, you can extend your connection to every corner of your home. While they may not need to have a separate workspace, many virtual employees prefer to be surrounded by the sounds of other people working to keep them on task. Some live-work buildings even offer community spaces for workers to gather, typically these spaces are equipped with great furniture from office-furniture.com.au, where employees meet each other, share ideas and generally encourage one another. Often, residents in live-work spaces find that they can use each other’s services. Another great tip that we have to share is that it’s easy to track what remote staff are doing using monitoring software so if you have workers working remotely then you absolutely need that service so that you can check on what staff are doing.

Is a live-work space for you?

Only you can know if a live-work situation will work for you. Often, live-work lofts and warehouse conversions are near to factories, railroad tracks and other noise-producing industries. You can also check event-driven architecture to help you transition into a digital working space. Asking “what is event-driven architecture?“, you can know more about it on the site.

If you need quiet for your work, a live-work loft might not be the best place for you. Learn more about lifestyle at ilcabraolino.ch. But, if you thrive on the energy and industry of others, and like the idea of waking up and walking across the hall to your place of business, studio or office, we can help you find the live-work space that works for you.

Compliments of Virtual Results

When you’ve lived in it for a long time, getting a home ready to sell can seem daunting. If you are considering selling your home this year, make it your New Year’s resolution to get started early. That way, whether you decide to sell or not, your home is organized and easier to maintain.

6 Ideas to help you get organized now!

• Stop adding to the clutter. If it is your habit to purchase multiples of sale items, stop! Or, if these are items you use all the time, reduce the number of multiples to no more than you will use in a month or so. Instead of ordering large quantities, place items you use consistently on a schedule for reorder instead. That way, you’re not filling up your shelves and closets with the extras, but you won’t run out either.
• Plan where things go. Set aside a couple boxes or bags to handle items you plan to give to charity and those you plan to give to family members and set aside what to sell at a garage sale. Consider keeping the boxes or bags in your trunk. That way, as soon as they get full you can deliver them where they need to go. For items that you intend to keep, take them to the location they belong immediately.
• Choose one thing. This week, simply choose one thing to organize. It can be a drawer, a closet, a storage bin… It really doesn’t matter what you choose, but make sure it is achievable in one day. So, if your attic is a massive project, don’t start there. Each week (or each day if you’re really motivated) choose another item to organize. Even if it is just your medicine cabinet, organize it by getting rid of expired medicines (take them to your pharmacist for proper disposal), old make-up and items you haven’t used in a couple years.
• Don’t fear your piles. Sometimes, when you’re in the midst of getting organized, you need to have piles, stacks or other groupings of things that need long-term storage or that you need to deal with. If the item is long-term, you can set it in one of your planning boxes. If it needs to be dealt with soon, choose one evening (or morning) each week to quickly go through and file, mail, respond, etc.
• Find a way to handle paper. There are a few papers that must be kept: original birth certificates, marriage licenses, contracts, etc., but many items we keep in paper form could be kept digitally in far less space. Consider getting an organizing scanner such as a Neat scanner that can scan and organize receipts, bills, business cards and myriad other paperwork for you.
• Let go of items you don’t use. Just because Aunt Sally gave you a toaster for your wedding six years ago, don’t let it fill up your counter or cupboard space if you’re not using it. Donate it to a charity that can get it into the hands of someone that will use it. To make certain to protect the sentimental value of the gift, start a virtual scrapbook with images of items you give away, and a short note of who gifted you with the item, a special memory about that person and where you gave the item.

Organizing just the first step toward preparing for a sale.

We can help you to sell your home quickly by walking through your home and showing you what items to consider fixing or updating items of furniture you might want to pass on or put into storage to prepare your home for staging and things to consider to add curb appeal. Contact us today to get started.

Compliments of Virtual Results

As strange as it may seem to football fans, a majority of homeowners do not arrange their schedule around the Super Bowl. That being said, the Super Bowl typically signals the end of the Holiday season and New Year’s slump, so putting your home on the market around the time of the Super Bowl might be the perfect option for you. Markets vary, so only your local professional real estate agent can advise you on what is best in your area, but there are some reasons you might want to put your home on the market BEFORE the Super Bowl.

Here are some reasons why you may want to consider selling now rather than waiting:

While some analysts tout springtime as the best time of year to sell a house, these same analysts advise buyers to make an offer on homes in January. With lower inventories available, homebuyers looking for a deal in the cold of January may find what they are looking for in your home. Those with early tax refund checks may be ready sooner than others to snap up a good deal.

If your home is near the Super Bowl venue, some investors may snap it up to rent to Super Bowl attendees. On the other hand, if your home is far away from the Super Bowl venue, but you have a large bonus or media room, your home may lure Super Bowl partiers looking for the perfect place to host their Super Bowl gatherings.

But let’s face it: not everyone cares about the Super Bowl. What homebuyers care about most is finding the right home in the right place for the right price. According to a National Association of Homebuilders (NAHB) study, homebuyers want energy efficiency appliances, windows and other features that permanently lower utility bills; extra storage and organizational features that include a laundry room, linen closet in the bathroom, a walk-in pantry, and extra storage space in the garage.

To sell your home in midwinter, consider staging that takes weather into account:

• Make sure the walks and entryways are free of snow and debris. Take the time to clear off the patio too. You may not use it in winter, but your buyer needs to know it is there for the summer.
• Keep your home warm and cozy. Now is not the time to worry about heat costs. If buyers are cold and uncomfortable, they will not stay long enough to experience your home’s special features.
• If you have a gas fireplace, light it. Consider placing a grouping of candles in a wood fireplace and lighting them during your open house or showing. (NOTE: some buyers may be allergic to smoke from wood-burning fires, so consider not lighting a wood fire unless it is integral to heating your home).

Since daylight is at a premium in winter, try to have your house shown during daylight hours. Make sure your windows are clear and free of winter grime and that window treatments are clean and dust-free. If you must show your house after dark, turn on every light in the house and yard so that your home is warm and inviting.

Rely on specific advice from us, your local real estate agents, for optimizing your home for a winter sale.

Compliments of Virtual Results

The cost-of-living index measures the relative cost to live in a certain region. There are several theories about how to arrive at the cost-of-living index, but in general it measures the differences in the cost for goods or services required for day-to-day living, including groceries, clothing, utilities, housing, transportation, health care, building materials and eating out, among others. Because it is an index, it is not an exact measurement, but it is a useful tool for selecting a location to live in if you need to move.

How is it calculated?

In general, the cost-of-living is calculated by comparing the prices for a representative sample of goods, services and other items that would be in a typical family budget. Bear in mind that your budget may not be “typical” even if you believe it is. A cost-of-living index is different from the consumer price index.

The US Government uses the Consumer Price Index (CPI) produced by the Bureau of Labor Statistics (BLS) to indicate a measure of inflation consumers experience in day-to-day purchases, changes in interest rates, tax rates and seasonal adjustments. Beginning in 2015, the CPI will base its housing calculations on “owners’ equivalent rent” (what a homeowner would pay for their own house in rent) rather than on mortgage payments. This change, according to the BLS, is necessary to remove the “investment” aspect of ownership to the cost-of-living index. The CPI is based on 100 being equal to the cost of living in 1984 in the same location. Adjustments up or down from 100 mean that the cost of living has increased or decreased against the 1984 set point for that location.

Other indices use different market values to produce their calculations and to extrapolate the cost differences from one location to another. For example, the Council for Economic Research divides goods and services into six main categories. From those, it chooses 60 representative items and uses a one-time snapshot of those items from each location to produce its index and compares these prices from location to location.

Other sources take all of these indices into account to produce cost of living comparisons from place to place.

The US Department of State offers a list of such sources to help determine the best place for you to live in your circumstances. One of those, the Cost of Living and Salary Comparison Wizard, works for both the US and Canada. Simple enter your current base salary and the metropolitan location nearest to where you live and work. Then, choose the location to which you want to compare. The results will compare the cost to live in your current location to the new one and also indicate the difference in what you can expect to earn for the same type of job. A graph will indicate the “net change in disposable income” and an explanation of how those numbers may affect your standard of living.

For example: If you earn $50,000 in Dallas and you move to San Diego to take a similar position, you can expect to get paid about 5.8% more ($52,894), but your cost of housing, food, utilities and other items in the cost of living index will increase by 36.3%. All things being equal, you would have $15,000 less disposable income. So, in order to make moving to San Diego make economic sense, you would need to earn more than $68,000.

What if you have to move anyway?

Sometimes, you have no choice about moving. Your company may relocate you, or you may need to be near to a school or university, or near to family. When you have no choice about moving, you can use cost-of-living comparisons to negotiate a better salary.

Your local real estate professionals know specific neighborhoods and suburbs that might have a lower cost of housing, so even if you have to move, we can help you find the right housing to balance the cost of living for your new location.

Compliments of Virtual Results

Although the federal government has offered homebuyer programs in the past, for Tax Year 2015, most of the available home buyer programs will be at the local and state levels. State and local agencies, along with lenders and non-profit organizations often offer support for homebuyers in the form of grants or lower-interest loans, or assistance in paying down payments and closing costs.

Types of programs

First-time homebuyer programs try to encourage homeownership in a variety of ways. Often, the goal of a homebuyer program is to either encourage ownership among a certain economic demographic or to increase ownership in a certain target area. Some ways agencies use to increase ownership include:

• Offering free courses on home buying.
• Consumer counseling with a goal of homeownership.
• Favorable lender terms.
• Local or state tax credits.

There are dozens of programs, even hundreds spread out throughout various cities and states across the U.S. for 2015. Often, these programs have specific requirements of the buyers such as “first time ownership” or an income threshold. Other programs require that potential homeowners attend classes on owning a home, credit, financing a mortgage and other types of education geared toward insuring homeowners fully understand the ramifications of homeownership.

Find programs in your area

To locate programs in your area, or even in nearby locations, first try searching under variations of “home buyer assistance 2015” plus the name of your neighborhood, city or state in your favorite browser. Make certain you include the year so that you find programs available in 2015.

Next, go to HUD.gov. There you can find a database of programs offered by cities, counties and states across the U.S. Type some version of “home buyer program” and your state, county or city in the search box. You will retrieve a list of links to various programs available in given areas. This electronic database is not organized in any specific way, so you will need to research each link, but the types of programs and incentives available may be just what you need to move into the homeownership category.

Mortgage programs

One of the potential boons for homebuyers with limited funds for down payment is a so-called 97% loan. Offered through both Freddie Mac and Fannie Mae, loans to otherwise qualified buyers with as little as three percent down payment would allow more buyers to enter the market. The program is slated to begin December 2014 and last through 2015.

These products seem similar to those considered predatory lending practices just a few years ago. Differences include creditworthiness stipulations and full documentation, the fact that the bad credit loans will be fixed-rate and not adjustable, and with terms maxing out at 30 years. Careful control of these areas and other risk-management practices should minimize the number of defaults for these programs while opening up homeownership to first-time buyers.

Where to start

As real estate professionals, we know what is available in our area. If you are a first-time homebuyer or are looking for help getting back into the housing market, let us know when you call us so that we can connect you with the programs that best meet your needs.

Compliments of Virtual Results

Now that the wrapping is all of the gifts and the tree is looking a little bedraggled, it’s time to take a look at your end of the year financial picture. Congress recently passed a bill extending a collection of tax breaks. While many of these only apply to special interests such as research and development, some of them apply to homeowners and could help lower your tax bill.

Debt forgiveness

Following the housing crisis of 2007, Congress passed the Mortgage Forgiveness Debt Relief Act. Originally slated to be a temporary measure, Congress has extended the Act three time … the most recent being the extension through the 2014 tax year. Under this rule, certain homeowners that lost their home through foreclosure, or qualified for one of the repayment adjustment plans, do not need to pay income taxes on the forgiven debt.

PMI deductions

Because of the volatile housing market in recent years, some lenders erred on the side of caution by requiring buyers to purchase private mortgage insurance (PMI). At the time, you could not write off the PMI even though your lender required it. But this year, homeowners that qualify and that itemize their deductions can now claim a tax deduction for the cost of paying PMI on both their primary home and on vacation homes.

Interest

Most people already know that they can get a tax break for the interest they pay on their mortgage. What they may not know is that the bigger the loan, the bigger the tax deduction. Just remember that it is not a huge deduction. For the average homeowner making between $40,000 and &75,000 the deduction amounts to just $50 per month or so. When your income is in the $250,000 range, however, the mortgage interest deduction is closer to $500 per month. Check with your tax advisor before taking out a mortgage just for the income tax break on the interest. Most states that have income tax also offer mortgage-holders a break on their taxes.

Property taxes

While property taxes take from your bottom line, the good news is that you can deduct your property taxes from your gross income. This reduces your taxable income and lowers you tax responsibility.

Sales tax deductions

Several states have no income tax. For homeowners in these states—Alaska, Florida, Nevada, South Dakota, Texas and Washington—Congress passed a temporary tax break so that in 2014, taxpayers may deduct paid state and local general sales tax instead of income tax.

Improvements

Homeowners that added improvements such as Energy Star heating and air conditioning units, energy efficient windows, water heaters, insulation or recently have gotten a roofing replacement may be able to take advantage of tax credits. Check with your local energy provider for information on what qualifies.

2015 Breaks

• U.S. Code 121 exempts certain home sellers from paying income taxes on the profit of the sale of their home. Qualifications include: a profit of less than $250,000 for a single filer or less than $500,000 for a joint return and you lived in the house for at least two of the five years prior to the sale.
• Selling Costs: These include legal fees, escrow fees, title insurance, inspections, real estate agent’s commission and advertising costs.
• Moving deduction: If your home sale is due to relocation for work, you may be able to deduction transportation costs, travel to and lodging in your new city, and costs for storage.
• Home improvements to sell your home: While general home improvements are not deductible unless they add to energy efficiency or another special program, you can deduct home improvements made within 90 days of closing on the sale of your home.
• Points: When you refinance hour home, if you paid points in order to get a lower interest rate you can deduct a proportional share until the loan is paid.

Deductions can be confusing and change from year to year, so be sure to consult with your income tax professional for specific deductions you can take.

Compliments of Virtual Results

You’re finally ready to think about buying a home, but you doubt your ability to save up the necessary down payment. Twenty percent of even a modest home can seem out of reach for first-time homebuyers. Here are some creative tips for eking out some extra to boost your savings:

Find alternatives

Nearly all discretionary funds (the money left in your budget to spend on entertainment, eating out, and other frills) can be redirected. For example:

• Ditch the cable or satellite: If you pay $50 for cable, you can switch to Amazon Prime or Netflix and have an extra $30 to put into your down payment savings account.
• Revise gym membership: If you pay for monthly gym membership, you can find an extra $35 to $55 per month by switching to a lower-priced gym or working out in a local park or recreation center instead.
• Check out the local library: Most libraries offer more than books. They have DVDs, audio books and magazines. You can access Wi-Fi, free classes and even tutoring, book clubs or game nights.
• Socialize at home instead of going out: host a game or movie night and convince your friends to do the same. You’ll all save money and have fun.

When using this method to save for your down payment, it is important to isolate the savings, so continue to pay the full amount for everything, just pay it into your savings account instead.

Monetize hobbies

This is a tricky idea because sometimes hobbies cost you money instead. However, sometimes you can make gifts instead of buy them, or sell what you make for more than it cost you to make it. When this is the case, consider setting up an online store such as Etsy and earmarking the income for your savings account.

Make a game of it

A way to create the discipline of saving is to make a game of it.

• Indulgence Matching: One idea is to set up a matching game where whatever you spend on non-essentials (that latte at your favorite coffee shop or wine, beer or cigarettes) requires you to put an equal amount into savings. So if you can’t afford to pay eight dollars for your non-fat half soy espresso drink ($4 for the drink and $4 for savings), you’ll have to find a less costly alternative to enjoy.
• Savings Challenge: Compete against a spouse, partner or friend to see who can save the most money in a specific timeframe (one month, six months, etc.). Create a savings metric (actual dollar amount, percentage of income, etc.) you can each achieve with disciplined effort. Make the prize be another savings for the winner such as the loser hand-washes the winner’s car.

Side jobs

Consider adding a side job, or doing chores for elderly neighbors and family members. Let them in on your purpose so they can tell their friends that you’re available to rake leaves, wash windows or help with the deep cleaning. If you don’t know anyone that needs help, sign up with TaskRabbit to get connected with people that do.

Coin jar

This is a simple way to add $500 or more a year to your savings. First, you have to choose to use cash for casual spending (coffee, fast food, beer runs, parking). Then, take the change and put it in a jar, only spending the paper money. To keep yourself from dipping into the jar, consider putting a slit in the lid and then gluing the lid onto the jar. You’ll have to break the jar to get the money.

Increase savings by investing

As the money in your savings account grows, transfer it to a secure short-term savings account like a CD or money market account. Even an online savings account will earn more than your big-bank savings account.

Gifts

Let family members know that you’re saving up to buy a home. That way, they’ll know to gift you with either money or something to increase your savings (restaurant certificates so you can save on eating out, gas cards, etc.).

eBay or Craigslist

Most of us have stuff lying around that we don’t use, don’t need and could sell to someone that wants it. While you may wince at selling that original flat screen TV you bought new for pennies on the dollar, letting it collect dust while you watch Netflix on your larger on is just a waste of money. Take those pennies and add them to your savings.

Stay in touch

When you know you’re nearing your savings goals, stay in touch with your real estate professional. We know when a listing drops in price or the seller is offering incentives that can stretch your savings into the amount you need.

Compliments of Virtual Results

Most of us rejoice when the prices at the pump go down. To use that means freed-up cash in our personal economy. When we’re consider buying or selling a home, however, the price at the pump can impact our bottom line in ways we don’t realize.

Local economy

When the local economy relies on income from crude oil sales, a drastic reduction in prices can depress the local market. So in places like Houston or the Canadian Province of Alberta, for example, a dip in the price of crude oil could mean fewer people moving into the area so sales to newcomers may slow down, like in offshore jobs Thailand. Or, it could mean that folks whose income relies on the oil industry may decide not to move into that bigger home until things stabilize.

Conversely, communities that rely on delivery of good from other areas might see an improvement in their local economy. If your city relies on the trucking or train industries, lower prices on fuel can mean more money freed up to spend on housing. Economies that depend on air travel should also see an uptick since lower fuel prices means lower cost air travel.

Inflation

One of the historic predictors of inflation was a rise or decrease in oil prices. Economists would predict that an increase in fuel costs would depress the consumer aspect of the economy while a decrease would raise consumer spending. In this scenario, a decrease in fuel prices should result in an increase in housing prices since more people would be able to enter the house-buying market. Recent forecasts run by the Federal Reserve Bank of Cleveland question the long-term use of oil as an inflation predictor, but for current decades, the connection is striking. For many housing markets, a decrease in fuel costs should improve the selling market.

Costs of goods

While most consumers know how prices at the pump affect their driving habits and even some of their spending habits, most do not reflect on the way it changes the price of products made from petroleum byproducts. These products include most of the products on the shelves of discount retailers like Wal-Mart and Target. From your plastic milk jugs and water bottles to that flat-screen TV, clothing to carpeting, oil prices affect the products you use in your home every day. When prices go up, the cost of goods sold goes up. As prices of crude oil go down, however, manufacturers and retailers may not be as quick to pass those savings on to consumers. Volatility in the crude oil market means they may have to plan for the prices to go back up in the future so they may delay lowering the price of goods.

An unstable market means that the cost to build new homes can change from day to day. Year over year, the cost to build the same home varies dramatically. According to the National Association of Home Builders, the average share of a home’s sale price that goes to the construction cost jumped from 59 percent in 2009 to 62 percent in 2013. This means that new homes built during higher costs times may not see the same price reductions as older pre-owned homes.

Talk to an expert

To learn how the changes in fuel prices and crude oil affect your local housing market, talk to a real estate professional. We can help you determine if this is the right time for you to buy or sell. We know the best ways to market your home and how to watch the trends for the best home-buying options. Give us a call and we can get started.

Compliments of Virtual Results