The falling oil prices over the last few weeks have been a welcomed savings for many households, especially for those who have long commutes for work. However, economists are torn whether or not the drop in oil prices will be good for the economy, including new homes. The new home forecast is predicting over 800,000 new home starts in 2015, which is an upward trend when compared to just 641,000 new homes last year.
In areas, like Texas and North Dakota that depend heavily on an oil-based economy, the lower prices may have a negative impact on new home construction but how much is yet to be determined. However, the rest of the nation, including Prescott, Arizona will see the falling oil prices a benefit that will strengthen the real estate market. “It has the same impact on consumer spending as a tax cut would. It should help to strengthen housing demand,” said Mr. Nothaft, Freddie Mac.
At Crystal Creek Builders, we are happy to report that the falling oil prices are good for new homes in Prescott, Arizona. Crystal Creek Builders has been building new homes for more than twenty-five years and we will continue to build in 2015. Contact us today to learn about our free lot evaluation and Custom Home Design for only $975. Let us build your dream home today!
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Photo Source: A construction worker building single family homes in San Diego – Reuters