Today was the 78th consecutive day that gas prices have fallen. (Anyone want to buy a real nice 2006 Ford Expedition? I need to get the bigger Ford Excursion to pull our camper!) What do gas prices have to do with real estate sales? it's a thing called the wealth effect, or the emotional impact people feel when they have more money in their pocket. So, since gas is lower by half since July, consumer confidence is rising from its October lows, and Black Friday was better this year than last year for retailers.
The wealth effect does a lot to get prospective home buyers out looking and closer to buying.
Also, with oil & commodity prices dropping, the threat of inflation is dropping, so interest rates are as low as they've been in at least three years.
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