Raise your hand if you enjoy lower prices at the gas pump where you live!
Gas prices are the lowest they’ve been in 7 years, and this drop in fuel prices functions like a major tax cut for middle class consumers, according to the Wall Street Journal. An in depth read of their December 2014 article on the topic suggests the average middle class family “could save as much as $750 annually.” Another WSJ article posits that a middle class fuel expense decrease of this amount, when translated into additional spending by middle class consumers, could contribute to a boost in Gross Domestic Product (GDP) of as much as .4% in the following year.
You might be interested to know that the United States GDP did in fact increase in 2015 – up 2.4% from the year before, and lower fuel prices certainly had a hand in the economic growth our nation enjoyed.
If someone handed you $750 bucks and said, “Go to town – life cost less this year, and you can spend this money any way you see fit,” you’d be pretty psyched, right? In the case of fuel prices, economists expected middle class consumers to purchase more gas (why not drive a little further for a really great burger when gas is so cheap), and to be more willing to upgrade the family jalopy to something newer or a little more demanding at the pump, like a truck or SUV. And this is exactly what happened.
We find it fascinating that an average annual cost savings of $750 – an amount few people in the United States would categorize as ‘a lot of money’ or ‘life changing’ or significant enough to encourage a major purchase (like a new SUV or truck), could impact the national economy in such a way.
What if one of the biggest financial transactions in the life of an average dues-paying member of the middle class – the purchase or sale of a home – cost far less than what people are used to paying?
TRELORA is Denver’s only flat fee real estate brokerage for both buyers and sellers. We are ahead of the game with a full service model that asks buyers or sellers to part with just $2500 of the equity in their home rather than a hefty 3% commission on each side of the table. Our average client saves $12,000 on the transaction – and many save more. Our business model has a major economic impact on individuals and families in the Denver area, and we believe these savings are impacting the local economy as well.
A $750 annual decrease on fuel costs for the middle class created significant, measurable growth for the national economy.
What will happen when millions of individuals and families across the United States save thousands of dollars on their real estate transaction using TRELORA’s full service flat fee business model?
Get ready, US Economy.
The real estate industry is ready for change, and you’ll be hearing from us.