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. For more real estate […]
continue reading Q: How do you think the invasion of Ukraine will affect real estate? Peter, Englewood, NJ A: Any war, especially one where civilians are explicitly targeted brings unfortunate death, destruction and displacement. Interest rates often go down in times of uncertainty, like they did during the initial Covid pandemic lockdowns because investors usually place more capital into safer assets like bonds. This would lead to declining mortgage rates or at a minimum a slowing of mortgage rate increases. It is also possible that a prolonged war in Ukraine may trigger a recession in the US although it’s too early to tell at this point how the conflict will last or when the conflict will end. During a recession, there are […]
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