"Second-home sales were mixed in 2006, with the combined total of vacation- and investment-home sales accounting for 36 percent of all existing and new residential transactions ¿ down from 40 percent of sales in 2005, according to the National Association of Realtors®. NAR¿s annual Investment and Vacation Home Buyers Survey shows vacation-home sales rose 4.7 percent to a record 1.07 million in 2006 from 1.02 million in 2005, while investment-home sales fell sharply, down 28.9 percent to 1.65 million in 2006 from a record 2.32 million in 2005. By contrast, primary residence sales fell 4.1 percent to 4.82 million in 2006 from 5.02 million in 2005."
MortgageDailyNews.com - "What Do High Gas Prices Mean For The Housing Market?"
This is a great article that looks at the repercussions of rising energy prices on the housing market.
Along with gas prices, many southern California cities are hiking utility prices to cover costs of infrastructure upgrades. The city of Riverside just approved a water rate increase (see article) of approximately 12 percent for the first year and 10 percent per year for the following four years taking effect on November 1 2006. LADWP is also considering utility hikes (see LADWP article). These hikes combined with other rising energy costs is one more added expense for many who over-stretched their budget to get into the real estate market. Even worse would be if large businesses decide to move elsewhere because of these new and rising energy costs. What is the tipping point? At point will people and businesses take their money elsewhere? Wait a minute, they already are!
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