According to some studies, winter is an excellent time to put your home on the market, with properties moving faster and for slightly more money than in other seasons. However, winter weather puts the cost of utilities into perspective, reminding market watchers that fossil fuel prices and home market cost valuations are inextricably linked to each other.
Recently, a decision by OPEC not to reduce production in the face of plummeting barrel costs made energy traders wary about the start of 2015. With commercial gasoline in some parts of the country expected to reach less than $2 by year's end, it's a good market for consumers. To fill a 275 gallon heating tank, The Boston Globe reports that homeowners can currently save more than $100 on the cost of heating their homes. The fall in costs could mean that homes across the country see modest price reductions.
We know that the opposite is true: When fuel prices surge by 10 percent, home prices can go up by between 1 and 2 percent, according to a study by the Climate and Energy Economics Project at the Brookings Institution. The survey looked at homes in Nevada over a period of 34 years to determine the relationship between fuel costs and home market cost valuation.
"The study found that neighborhoods closest to the Las Vegas city center and to the west and south of the city, around the Highway 215 corridor, tended to become more valuable as gas prices rose, with a gain of as much as $5,600 in value," reports The Wall Street Journal.
One way to boost the market value of your home for buyers and homeowners' insurance is to implement efficient heating and cooling systems. When the current downward trend in fuel costs reverses, your home will be more valuable if you can demonstrate energy savings thanks to updates.