Today we will conclude our 6 part series on the way the inevitable increases in oil and gas prices are and will continue to effect the real estate market.
We have looked at how location, heating systems, design and floor plan, square footages, building materials, and the Building Code are all profoundly effected.
Aside from all of that, the effect of the energy crisis on the economy over all will profoundly effect the real estate market. As more of people’s disposable income is absorbed by transportation costs, food costs, and the cost of virtually every product and commodity, people will be forced carve down their housing allowances.
The term and implications of the word “downsizing” will change from being an elective change of values from ownership to experiential living, to a mandatory change for survival. Downsizing will be a matter of absolute necessity verses a lifestyle choice.
Look forward to many more small 1000 to 1500 square foot 3 bedroom ranchers in the lower mid range of your market area’s average residential housing price point, and look at larger homes on the high end of the market sitting for a much longer period of time on the market.
Increasing gas prices will also effect on a macro economic scale as it effects tourism and the influx of people to our area as new citizens, as well as tourism dollars dropped in our communities, which will in turn have a spin off effect on our real estate market as the trickle down effect ensues.
This concludes our study of the impact of rising energy costs on the real estate market. We hope you’ve enjoyed it and we tremendously value your input.
Best Regards,
The Debbie Simmonds Lifestyles Real Estate Team
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