Gas Prices And Housing - Where To Buy A Home And Live During An Economic Downturn

Posted on April 30, 2008

As airlines declare bankruptcy and gas prices push toward $4.00 a gallon, the housing market is being effected severely. Heightened uncertainty is causing most homeowners to stay put and wait things out, as the wild ride of the economic downturn continues.

Suburbs are being greatly effected as in many parts of the country sales of homes have declined more than 30% as home buyers aren’t wanting to endure the cost of commuting with astronomical gas prices soaring beyond reason. This means living downtown and close to where you work is the preferred option. In many cities, prices are lower than ever and some beginning to nudge back up thanks to skyrocketing gas prices.

When all things are considered, the cost of gasoline is a huge monthly expenditure for people who live in the suburbs and commute to work. What used to cost $35 to fill up a gas tank now exceeds $50. Multiply that by four and a monthly expenditure of $200 adds up to an annual economic burden of $2,400.

It’s no new revelation that commuting through traffic and enduring the aggravation isn’t an enjoyable experience. Congested highways, impolite drivers, and long gas lines can make living in suburbs a dreadful experience for the commuter working far away in the city.

Hence gas prices will alter the housing market greatly and cause developers to think twice before developing in the suburbs. Whereas in times past new home buyers drove until they could qualify for a loan to buy, today under the burden of gas prices many are beginning to cry. It just goes to show you every economic variable must be accounted for when it comes to the real estate market.

Paul Davis is Central Florida’s favorite and most reputable property appraiser frequently called upon by banks, homeowners, and savvy real estate investors to assess property values. A builder for over twenty years and also a real estate broker, Paul Davis brings a wealth of knowledge to the table as an appraiser.

Paul’s company Midstate Appraisals serves Central Florida (Lake, Orange, Seminole, Osceola, Sumter and Davenport in Polk counties).

Contact Paul Davis and Midstate Appraisals for your next appraisal:

Office: 325-242-9973

Cell: 352-636-6672

Fax: 352-242-4912

midstateappraisals@earthlink.net

www.midstateappraisals.org