Hojin's SW Orlando Real Estate Scoop

Real Estate News for Dr. Phillips, Windermere, Gotha, Celebration, Winter Garden, Ocoee, Clermont, Metrowest

Hojin's SW Orlando Real Estate Scoop header image 2

The Home Buyer Response to Gas Prices

July 2nd, 2008 · No Comments

I just filled up my car at the gas station and the shock of what it costs got me thinking about how this is affecting the home buyer.

With gas prices reaching ridiculous levels, consumers are adjusting their behavior to compensate for the inflation.

They’ve obviously cut back on the amount of gas purchased, but also have increased spending on smaller cars, scooters, mules for farming, bicycles, locking gas caps, and homes closer to work or near public transportation.

Economists call this phenomenon the cross price elasticity of demand.

If gas prices continue its climb, real estate values for properties closer to places of work should increase in value more rapidly then properties further away. There’s no good source of public transportation in Orlando and the proposed commuter rail looks like it’s a long shot, so communities near major places of employment should fare better in the future.

Location is the name of the game in real estate, and closer to work will be the most sought after location in the future.

Tags: Market Forecast