How Higher Energy Costs Will Affect Housing Demand

Q: I’ve been paying more and more money to heat my home. When do you think energy prices will go down? Ernie,Clark, NJ

A: The cost of energy for the average American was up almost 15% in November from a year earlier. Energy prices have been higher lately due to many factors including the Russian invasion of Ukraine. I don’t know if or when energy prices will drop because they are driven largely by global supply and demand. If higher energy prices persist however, over time, home buyers will demand and pay more money for homes that are more energy efficient to lower their household expenses. Thanks for your question, Ernie.

Thanks for your question, Wilbur.

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