What’s the biggest change in the economy lately that truly affects us all…the price of gas. If you are like me, you have been keeping a close eye on the ever dropping gas prices we have been experiencing in the past weeks. I bet the company that sells those large numbers displays that the gas station use is busy sending out the number “two” as I am seeing what was once $4.55 per gallon down to $2.95 per gallon. (I heard yesterday that Costco in Livermore is $2.76)
So what do gas prices have to do with the real estate market? Well directly, probably nothing! Although the argument can be made that people can again afford to commute and thus secondary markets outside of the main business centers will thrive again. Or someone can argue that the lower prices in fuel will help the economy and as the economy improves, so does the job market and with the government lowering interest rates, buyers will again be able to afford homes and this will be the spark we need in consumer confidence.
While all of the above may be true for the market, what I take from the situation is much greater and valuable.
