Home>Discussions>YOUR HOME>Home & Real Estate>Gas Prices Going Up, Real Estate Prices Going Down!
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beachside08
Gas Prices Going Up, Real Estate Prices Going Down!

It's the best time to invest or purchase a house. As the economic crunch is pushing crude oil prices higher than the roof, the Real Estate market is experiencing a big drop, making the current rates relatively cheaper.

Would you take advantage of the current real estate downfall and invest in a home?

Re: Gas Prices Going Up, Real Estate Prices Going Down!

I just did about a month ago...Im extremely glad I purchased :)

Re: Gas Prices Going Up, Real Estate Prices Going Down!

well it is a buyers market. Seems like a good idea. But with the cost of gasoline I would stay away from homes far from the city in rural areas. I personally see people moving closer to their jobs or taking public transportation as energy cost continue to rise.

goldhiller
Re: Gas Prices Going Up, Real Estate Prices Going Down!

IMO......unless you have your heart set on one particular house and you are afraid that someone else might snatch it up........it's still too early to get the best deals on real estate. I'm guessing a year from now you'll see some truly motivated sellers and lower prices yet.

thaxman
Re: Gas Prices Going Up, Real Estate Prices Going Down!

Depending on where you want to live, now OR later is the best time to buy. With gas prices increasing, adding to inflation all around, we are going to see the suburbs & exurbs become increasingly UNPOPULAR for a long while. Urban living will define this decade, if not this whole generation. The good news is that people have been coming back to the first ring outside of the CBD (central business district) since the 90s, so many old run-down neighborhoods are already getting spiffed up. Now that Ameriacns have to take a hard look at how their paychecks come & go & need to re-assess & re-allocate, nice urban neighborhoods are going to become the next big thing. So how does this affect the homebuyer? Well, if you want to live "close-in," something I informally describe as being less than 10 miles from major employment hubs (5 miles or less being prime) OR along a VERY simple 1-step commuter route, then NOW is the time to get in. Prices in these areas probably haven't fallen as much over the last 2 years & most likely will start increasing as people decide they are sick of spending an extra $12/day to get to/from work or the grocery store or entertainment. So on the flipside, if you DO want to live in the new-build fringe suburbs, wait a little longer. As I just said, when people realize that their first couple hours of work each day go to getting there & getting home, they will be less enchanted with that new 2005 home they bought and will be looking at either selling it or abandoning it. This will be going on over the next few years as equilibrium is reached, but I predict that every time a gallon of gas goes up another dollar, there will be more urgency felt by those people. Already, I have found lots of deals on used items on Craigslist from people on the fringe. They are selling off the stuff they bought in an effort to either cover the mortgage or to cover gas. Soon, they will have run out of unneeded items & it will be the house they sell.

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