Real Estate Daily Guide

Is there a connection? Absolutely yes! As the price for a gallon of gas blows by the $3 mark and according to experts could “bee-line” towards $4, this is bad news for suburbanites living more than 30 minutes from the business epicenters of major cities. People’s fears about the long commutes to work and the fuel costs associated with long drives twice per day, will one day soon change their minds about where they should live. They will start choosing to live much closer “in” to their work to avoid some of the rising fuel costs they certainly face. This could have the biggest effect on home prices in those “outlying” areas and push prices down even lower. Since in most metropolitan areas, this is also where new construction occurs, look for further slow-downs in new home construction for the same reason.