Does the Price of Petroleum Have Anything to Do with The Price of Homes?

Yesterday, Tuesday June 19th, my husband, and I, and our two little girls were shopping at Home Depot in Camarillo, CA. Actually I have to rephrase that, my husband was shopping and my daughters and I were just messing around. As we were passing through the isles I overheard many of the shoppers complain about the price increases in many building materials and that got me thinking...

As we are all painfully aware, the price of oil has sky-rocketed in the past several years. With price increases in petroleum throughout the country, all materials that are derived from petroleum have been effected including some building materials.

So now do you see the domino effect? The high price of petroleum increases the price of building materials and
therefore, the newly constructed homes are outrageously priced. The rest of the real estate market has to keep up with these newly constructed homes and hence the increase in prices through out the market.

I know this is not the only factor that affects the price increase or decrease in our housing market, but it seems to me to be one of the factors that has been overlooked.