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What Would it Take for YOU to Feel the Pinch of Higher Gas Prices?

By
Services for Real Estate Pros with Financial Revitalize

As crude oil crossed $80 a barrel Thursday, the Wall Street Journal ran an interactive poll with its readers.

What sustained price for gasoline would cause you to cut back on other household spending?

The graph above shows the on-going results of the non-scientific study.  You can chime in, too, at http://forums.wsj.com/viewtopic.php?t=805.

As consumers cut back spending, the economy slows down which generally leads to lower mortgage rates and weaker housing markets as a result of job losses.  According to GasBuddy.com, some areas of San Francisco are already topping $3.50/gallon.

Brian Schulman
Coldwell Banker Residential Brokerage, Lancaster PA - Lancaster, PA
Lancaster County PA RealEstate Expert 717-951-5552
It is said that the demand for gasoline is inelastic - but there is some elasticity.  At some point, people will figure out a way to cut down their driving so that they don't have to cut their other spending as much.
Sep 14, 2007 02:05 AM
Tricia Jumonville
Bradfield Properties - Georgetown, TX
Texas REALTOR , Agent With Horse Sense

I agree with Brian.  I'd cut back on driving (am doing so already, in fact, which isn't easy, given I live out in the country and am a real estate agent) WAY before I'd let it cut back on other household spending.  And $3.50 a gallon is past the point that I'd do that, as I'm already doing it at about $2.60/gallon for diesel.

By the way, that illustration?  It's very effective, but it says it's copyrighted, hope you got their permission to use it because Dow Jones of all people can afford the big guns to defend their copyright.

 

Sep 14, 2007 02:18 AM
Matthew Rosov
Amerisave Mortgage Corporation - Laurel, MD
Certified Mortgage Planning Specialist

Since Driving is a necessity for me.  Prices would have to sky rocket for me to cut back - greater than $10/gal.

I would be looking long before that though for an electric car or even build one for myself.  "Necessity is the mother of investion!"

Sep 14, 2007 02:30 AM
Leigh Brown
Leigh Brown & Associates, RE/MAX Executive - Charlotte, NC
CEO, Dream Maker - Charlotte, NC
Unfortunately, being in real estate means that I just have to suck it up no matter what.  Can't do this job in Charlotte on mass transit. 
Sep 14, 2007 03:48 AM
Ilyce N. Powell
Financial Revitalize - Baltimore, MD
CMPS- Certified Mortgage Planning Specialist
Brian - I hope we can figure it out soon!
Sep 14, 2007 02:04 PM
Ilyce N. Powell
Financial Revitalize - Baltimore, MD
CMPS- Certified Mortgage Planning Specialist
Trica - I did give them their props, so let's hope it won't be a problem. Thanks.
Sep 14, 2007 02:05 PM
Ilyce N. Powell
Financial Revitalize - Baltimore, MD
CMPS- Certified Mortgage Planning Specialist
Matthew - I've been thinking about getting a hybrid for my next car. We'll see.
Sep 14, 2007 02:06 PM
Ilyce N. Powell
Financial Revitalize - Baltimore, MD
CMPS- Certified Mortgage Planning Specialist
Leigh - That's funny, but I definitely see your point.
Sep 14, 2007 02:07 PM
Matthew Rosov
Amerisave Mortgage Corporation - Laurel, MD
Certified Mortgage Planning Specialist

Ilyce - I'm not talking hybrid!  I'm talking full blown electric.  Have to plug in every night (no big deal - gotta do the same with my cell phone).  or even a fuel cell/solar cell.  We talkin cutting edge. 

We also talkin gas around the $4.5 and up range!

Sep 14, 2007 02:17 PM
Tricia Jumonville
Bradfield Properties - Georgetown, TX
Texas REALTOR , Agent With Horse Sense

How much electricity would it take to run a car, and how much would it cost?  Surely a lot more than to run a cell phone? 

I should know this stuff.  Darn.  Back to researching.

And citing (giving them "their props") only addresses plagiarism.  Copyright violation involves permission or lack thereof even if you cite the source - next time you post a blog, check out the wording of the little box that pops up asking you about it before it'll let you post.  I believe it specifically mentions permission. 

 

Sep 14, 2007 02:25 PM