When you’re feeling ready to dip your toe into the housing market, there are all sorts of indicators you can look at to tell whether prices are on their way up or down. Real estate experts and amateurs alike can look to job market data, market statistics, and mortgage rates to help decide what direction prices are heading.
But did you know there are all sorts of other predictors that insiders look to when trying to gauge prices? They’re out there, and some of them are downright bizarre.
Realtor.com recently published a list of eight of the weirdest indicators of price shifts. Here are five of the strangest indicators that can signal a change in home prices:
1.) Gas Prices
Lower gas prices can be a double-edged sword for homebuyers. On the one hand, it feels good to fill up the tank for less overall. On the other, lower gas prices tend to signal a rise in home prices. For every $1 dollar that gas prices are lowered, homebuyers can expect to see a $4000 increase in home prices while the average time to sell a property drops by 25 days, according to research by Longwood University and Florida Atlantic University.
Why does this work? The more cash consumers have in their pocket, the more likely they are to spend it, leading to increased consumer confidence and more sales. It doesn’t hurt that brokers can afford to travel more between properties, leading to more aggressive marketing, more showings, and more sales.
2.) Sports Stadiums Increase Home Prices
According to research from the College of William and Mary and the University of Alberta, moving a home just one mile closer to a professional stadium increases its value by $793, though the effect disappears after four miles. So if the powers that be are considering building a stadium within five miles of your home, perk up: Not only do you get to be first in line for season tickets, but your home is likely to gain in value.
3.) Trader Joe’s and Whole Foods
Two of the biggest health-conscious gourmet grocers, both Trader Joe’s and Whole Foods have dedicated cult followings – and having one nearby can seriously impact the price of a property.
According to RealtyTrac, homes near the market chains are significantly above the national average home value, with homes near a Trader Joe’s beating those near Whole Foods by 5%. And while homes near a Whole Foods tend to appreciate at rates of 34%, the national average, homes near Trader Joe’s locations appreciate faster, with a 40% appreciation rate from the time of purchase.
So if you’re looking for a home with a great value that’s only going up, look around Trader Joe’s neighborhoods – and pick us up some eggplant while you’re at it!
4.) Climate Change
Global warming isn’t just affecting our longterm future – it’s impacting housing markets in the present. A National Association of Realtors study of home prices and temperature change revealed a negative correlation between temperature increases and home prices. In the 82 markets studied, those with the largest increases in housing prices had the lowest increase in temperature. In locations where the temperatures increased significantly (by three degrees Fahrenheit or more), markets didn’t see significant price gains.
So as the planet heats up, it might mean your market is cooling down. Just another reason to try to save the planet with greener housing choices.
5.) Planting Trees Can Increase the Value of a Neighborhood
Speaking of green, did you know something as small as planting street trees can have a major impact on not just your home value, but the value of homes in your entire neighborhood?
It’s true! One study conducted in Portland, Oregon found that homes on streets with trees were valued at $7,130 more than houses on streets without trees. What a difference a little branching out can make for your home search!
Need any more help deciding what neighborhoods are right for you? Ready to buy or sell your home? Drop Real Group a line! Our experienced team is here to help you with all of your Chicagoland real estate needs.
