One of the most common questions we’re asked by New York real estate agents is “What do we tell our clients who ask us about energy prices?” It’s a complicated question that can’t easily be summed up in a sound bite or two. But here is some key information that you can use when your clients ask you the tough questions about energy prices.
- Energy prices are commodities that are traded on the open market. This means they are subject to economic forces like supply and demand. However, a price spike for any one type of fuel is uncommon. More often, we will see a gradual shift upward or downward in the price of energy.
- Heating oil prices in New York hit a 13-year low just last year. With so much supply available, prices plummeted, saving homeowners significant amounts of money and making life easier for homeowners who purchase an oil-heated home.
- According to the Consumer Energy Council of America, it doesn’t make economic sense to switch heating fuels. That’s because the cost to convert fuels is often significantly more expensive than the cost of upgrading to a new, high-efficiency system using the same fuel.
What Will Heating Oil Prices Be Like in the Future?
Since February 2016, heating oil prices have stayed pretty low! But it’s more important for your clients to understand where energy prices are expected to go in the future. According to numerous sources, like the Energy Information Administration and other energy experts, the expectation is that we have reached a “new normal,” and that today’s prices are expected to stick around for quite some time. Some experts predict that prices won’t increase very much at all for the next five years!
If you’d like to know more about the best ways to communicate to your clients about energy prices, contact us to order our FREE PRO$ materials or to request a FREE educational training session for your office.