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This week’s real estate topic is how oil and gas prices may have an effect on location in real estate. Every time I hear news from all sources and venues recently, the headlines are dominated by how the looming energy crisis will effect our lives. This is Part 1 of a six part series on the various ways real estate will be affected.
My Team is keeping a very close eye on this issue as I believe that this will ultimately have a profound effect on proximity to man made amenities to decrease people’s exposure to gas dollars spent on travel time to and fro work, school, doctors, hospitals, shopping, recreational facilities etc.
I am already starting to hear trepidation on the part of Buyers when I am showing them properties that are more than 10 minutes from any major commercial center. For the first time the subject of gas prices and number of trips to town is starting to dominate conversations. Inevitably as gas prices rise as they are anticipated to do, this may effect the way we analyze properties in terms of their comparative market value. ie. people will pay a premium to live closer to city centres, and conversely there may be a downward pressure on remote locations to compensate for increased travel costs.
So, inevitably we can look forward to higher densities in town cores and more multi-use buildings in our central business districts; put another way, a trend towards urban and city living, with an emphasis on the pragmatic aspect of location.
Best Regards,
The Debbie Simmonds Lifestyles Real Estate Team
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