Gas Prices & Real Estate Values - Chicken, Egg, Issue or Non-Issue?

Kent,

Drill in ANWAR!  What's the problem?  (and did Vishal text that comment in to your blog?)

Mike in Tucson

KENT - At some point, it becomes a numbers game, just like any product.  By that I mean, at what point does it become more expensive to live further away from a major city?  Not just for gas, but also for all living expenses combined.  Different people have different reasons for choosing where they live.  In my area, you tend to get less for your money as you get closer to New York City.  The commute from further out is more expensive, but similar homes are less expensive.  If anything, I think that more people may look into public transportation or working closer to home.  The only way that home prices will drop because of gas is if people set their sights lower because they cannot afford to buy gas and a home.

I see a definite correlation between gas prices and distance people are willing to travel... however it appears to be related more to the low end of the market as far as I can see.

Cost of gas definitely impacts cost of living and therefore would impact the amount of home you can afford and where you can afford it.  Of course it is a discretionary expense (to a point) and one could scale back travel outside of the work commute to help with the costs.  However, I think a lot of it is psychological.  For example, we hardly notice the small changes from week to week and so become desensitized to it.  It is really only those people that are aware of the amount in total they spend on gas that may be affected.  The truth is that home prices and sales in places where there is a lack of infrastructure or far from jobs (queen creek, el mirage, goodyear, etc.) are being hit and cost of commute may be one reason.

P.S.  I would have loved to see the link connected to the article so I could have read the article as well as your blog. 

Wait a minute... can I inject some more contraversy? OK... what's with the price of diesel? My goodness!

Increasing gas prices are impacting the things we need most, Kent. I've heard predictions from gas station owners of five bucks a gallon before the end of July.

Kent,

In our area, typical long commutes have really caused the more distant bedroom communities to flounder, while downtown Atlanta real estate is holding it's own!

This is directly related to the cost of gasoline.

The rising cost of gas will affect all industries housing included.

The price of gas is affecting the way I do business.  I am giving out more referrals to other agents than ever before.

Howdy Kent

Seeing that New Hampshire and Vermont are both rural State's.

Most folk's here commute 36 mile and more, one way to work.

The cost of gas is dfinitely impacting folk's here. A long with cost of heating fuel to heat their home's in the winter.

I am paying $4.00 a gal. as of today. I do use the top grade of gas in my Jeep.

The cost of gas and groceries is having profound impact on the market here. I have never in my 17 years of real estate seen it this slow.  I live in a rural area and my husband works in a local lumber mill  in our home town.  My office is 20 miles away.  I have hooked up wireless internet in order to work more from home and not drive if I don't absolutely HAVE to go to the office.  Home prices in our home town have always been less money than those in the larger cities.  They are dropping in price like everything else. 

It is a major issue.  In the late 70's real estate values in the exburbs plunged! So did the value of getaway homes.

Kent - The rising cost of fuel was a small factor in my retiring. At todays rates that is about $500 a month I am no longer spending. It is fast approaching, and will probably exceed $1,000 in pre tax income that I do not need to have or could spend on other things.

Howdy Kent

my friend

Thank ya for stopping by. I have written a response to your question.

Now heres something for ya to think about, this was said in Washington D.C.

Gas to be up to $7.00 a gallon by med. to late summer, up to $12.00 a gallon by winter.

Howdy Kent

My friend is everything ok with ya ?

Ain't seen ya for a few day's now, in the rain community.

Howdy Kent

Thank ya for stopping by to visit.

I think some one dose, but it not anyone here in the U.S., I can't say who it is. Bot this has been in the works for some time. Even before the war. I was over there for the first one.