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Russia Invades Ukraine; Record Gas Prices, No Relief, By Jondi Gumz
Ruth Bates
831.359.2212
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ruthbates1@gmail.com
CalBRE#01799929
THE MARKET
— The real estate market has fi nally picked up a bit. In the past 7 days there are 44 “New” and 21 “Coming Soon” listings in the County and 11 of those are in Aptos. List Prices continue to hit all-time highs. There are 20 Active Listings in Aptos as of 3/11, 2 are over $6.0M, one is over $5.0M; the Average List Price is $2,546,000 and the Median List Price is $2,322,000! NEW LISTINGS — I have two New Listings in Corralitos. 120 Via Del Sol is a 4 Bed, 3 Bath, 2543 Sq. Ft. home with many new updates on a fl at acre of land with a large Barn/Art Studio, corral, chicken coop, farming equipment and more. Asking $1,799,000.. I also have a fl at acre of land adjacent to 120 Via Del Sol, asking $650,000. Come by the Open House Sat & Sun 3/19-20 1:00-4:00pm. U.S. CENSUS — Results of the 2020 Census were recently publicized. The nation added about 23 million people since 2010, reaching 331 million. 65% of U.S. homes were owner-occupied in 2020. Maine had the highest rate at 75%. 12% of U.S. Homes were vacant. (hum – that is a high number). 88% of homes had a broadband internet connection. 42% of homes had one member 60 years or older, and 12% of the population moved in 2020. Many demographic changes are occurring and real estate will change as well. In Santa Cruz, where the vacancy rate is 9.5% per the Census (2283 homes), there is a proposal to tax “empty houses”. If between 1,500 and 2,000 homes paid the tax, it would raise $6 million to $8 million, which the City plans to use towards “Aff ordable Housing” measures. INTEREST RATES — Per Bankrate. com as of 3/11/22, the average rate for a 30-year fi xed mortgage is 4.32%. The average 30-year fi xed refi nance rate is also 4.32%. The headlines read that Infl ation was 7.9% last year, highest in over 40 years. Aff ordability is being hit from both sides.
——— Lots of bad news and stress in the world, but Spring is here and Aptos is a fabulous place to live. Call, email, text, and Get Results With Ruth!
COMMUNITY NEWS
Russia Invades Ukraine; Record Gas Prices, No Relief
By Jondi Gumz
If you were hoping for a gas tax holiday to make filling up your tank less painful — $6 a gallon since Russian president Vladimir Putin ordered his military forces to invade Ukraine on Feb. 24 — you can kiss that idea good-bye.
Monday’s vote on an initiative by Assembly member Kevin Kiley, R-Rocklin, was 40 in favor — one short of the 41 yes votes need — 18 opposed, and 18 did not vote. Democrats do not want to suspend the gas tax, which was increased in 2017 to fund road improvements statewide.
Ukraine reports 1,300 soldiers killed since the invasion began. Further more, 636 civilians have been killed and 1,125 injured, according to the U.N. Human Rights Office, and 2.8 million people displaced.
At Aptos Safeway, the price of regular unleaded has jumped from $5.09 per gallon to $5.49 per gallon. It’s $6.05 a gallon at Arco in Aptos and $6.39 at Chevron in Aptos.
In Scotts Valley, the Union 76 on Mount Hermon Road — never one of the less expensive choices — raised the price to $5.39, then $5.89 and $5.99.
On March 8, when President Joe Biden announced a ban on Russian oil, gas and energy imports to the U.S., California had the highest gas prices of all 50 states, according to GasBuddy.com, averaging $5.44 for a gallon of regular unleaded gas vs. $4.68 in Hawaii.
House Speaker Nancy Pelosi (D-California) had endorsed a ban to put pressure on Putin.
Last year, the U.S. imported 245 million barrels of oil from Russia — about 8% of all imports, according to Associated Press — and that was up from 198 million barrels in 2020.
The United Kingdom announced a ban on Russian oil the same day as Biden, but it won’t take effect until 2023. Russian oil makes up 4% of the UK supply.
Shell said it would stop buying Russian crude oil on the spot market, and McDonald’s said it would temporarily close its 850 fast-food restaurants in Russia.
During his State of the Union address March 1, Biden said he would release 30 million barrels from the Strategic Petroleum Reserve, but that didn’t stop the national average price of gasoline from rising to $4.213 per gallon.
One reason for high gas prices in California is the state gas tax, 51 cents per gallon, and due for a hike July 1, with the summer tourism season in full swing.
Soaring gas prices could mean political fallout as this is an election year, giving voters an opportunity to cast ballots on June 7 and Nov. 8.
Gov. Gavin Newsom proposed to skip the three-cent gas tax hike in July, but Democrats are not on board.
Kiley had proposed using some of the state’s budget surplus — estimated at $46.5 billion to $69.5 billion — to make up the $4.4 billion in revenue that would be lost during a six-month gas tax holiday.
Although lawmakers in California could not agree, Florida legislators agreed to a gas tax holiday during the month of October.
Gov. Ron DeSantis, a Republican, had proposed a gas tax holiday for five months. The Florida gas tax is 27 cents per gallon, and unleaded gas costs $4.18 per gallon.
For Santa Cruz County and other parts of the state where tourism is a major part of the economy, the big question is: How will these record gas prices affect families who drive from the Bay Area and Central Valley?
And if they decide to drive here for a visit, how will higher gas prices affect their spending at local restaurants and attractions?
A Yahoo analyst said gas prices would have to reach $5.25 per gallon to be a record high, taking inflation into account.
In Scotts Valley we’re past that point.
In 2020, Exxon, Shell, Chevron and BP posted huge losses, about $70 billion, and in 2022, they reported $70.69 billion in profit. n
Photo Credit: Jondi Gumz
