Today, as I was looking at last months gas receipts, I found myself wondering if the high gas prices this year are affecting the sale of homes, especially those that are out outside of the city limits?
The average price for gas in Rocky Mountain Region was $2.69 on March 8, 2010, according to ConsumerReports.Org. A year later, it had risen to $3.30. By May 9, 2011 it is at $3.75 per gallon.
Is this impacting the sales of homes on acreage in the Colorado Springs area? These homeowners have a longer commute and will thus be spending more on gas. Generally, most people that opt to live in the country do not HAVE to live in the country - especially if they are living on 5 to 10 acre tracts.
Based on a simple comparison of sales figures for homes sitting on 5-10 acre tracts, there does not appear to be a significant difference overall.
The homes that sold in this category ranged from $50,000 to $989,000. Note the DOM (Days on Market) figures are average.
Within this category, the $50,000 to the $200,000 price range, showed the most significant difference. 22 homes on 5-10 acres were sold last year versus 17 this year. However, last year every home that sold during this time period in this price range was a manufactured home. Many of those were distressed properties. This year, only 12 of the 17 homes sold in this price range were manufactured homes. In addition, this year's average sales price increased about $14,000 to $135,611. Therefore, it is unclear if it is the increase in gas prices or a reduction in the number of distressed properties has contributed to the decrease in the number of sales in this particular price range.
To conclude: In Colorado Springs, the gas prices do not appear to be affecting the sales of homes that are on 5-10 acres. More analysis is required see if this holds true for other types of properties.
If your Colorado Springs area property has more or less acreage, please feel free to contact me for a more detailed analysis.
Researched, Written & Posted by
Sondra Meyer CPA/Real Estate Broker
Star View Ranch, Real Estate & Financial Advisory Services
979-575-2700
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