Falling Gas Prices Can Boost Home Sales, According to Study by FAU, Longwood Real Estate Economists

According to an ongoing study by Florida Atlantic University and Longwood University faculty, falling gasoline prices can abbreviate the time it takes a home to sell as well as lift the selling price. Using data from central Virginia and spanning over 10 years of gas price fluctuations and housing sales, researchers found that for every $1-per-gallon drop in fuel price, average time to sell a house is shortened by 25 days. Additionally, the findings indicate that for every $1-per-gallon decrease in gas prices, the average sale price climbs 2.4 percent. That amounts to roughly $4,000 per sold property in the study. Finally, a $1 decrease is also shown to improve a seller’s odds of selling and closing by about 20 percent. “In the event of a forced sale, these odds are very welcomed news for a seller who might already own a second property and must close,” said Dr. Ken Johnson, a real estate economist and professor in FAU’s College of Business. | Read More