Gas prices have been steadily rising. The average price of a gallon has increased more than 30 percent over the past 12 months. Although it has come down a few cents in the past few weeks, economists expect it to remain well above the $3 per gallon mark through the rest of 2011. This not only affects the type of cars Americans drive and their driving habits, but it also impacts their housing choices. More buyers are choosing homes closer to shops and services because of the increase in gas prices.
Home buyers are not only thinking about carpooling and taking public transportation to work, but they are also rethinking their long commutes to work. According to a Coldwell Banker survey of 1,188 of its real estate agents regarding buyer trends, 75 percent said higher gas prices are influencing homebuyers about their decisions purchase homes. 89 percent of the respondents said buyers want to look for homes closer to work, and a whopping 93 percent said buyers would choose to live closer to their work if gas prices continue to rise.
Since more employers are providing flexibility to work from home, more buyers are expected to look for homes which allow them to telecommute. In fact, 77 percent of the surveyed agents said more buyers are interested in having or creating a home office.
Since most buyers wouldn’t fancy living in their gas-sipping Toyota Prius, they are thinking about considering urban living. 56 percent of the surveyed agents said compared to 5 years back, more home buyers are contemplating urban living as a way of reducing their commute time and distance. The main attraction is the ability to walk to work, buy groceries and hop on public transportation. It is no wonder that smart growth communities are becoming popular in several metros. People seem to like the attractive mix of affordable, middle-income, and up-scale housing with restaurants, theaters, offices and retailers located within the community. Many of them are located near or close to a public transportation facility, which means people can walk to work, ride a bike or take the bus or train.
"The decision to buy a home has always been tailored around the personal, multi-faceted lifestyle needs of each buyer," said Jim Gillespie, CEO of Coldwell Banker Real Estate. "Today, rising fuel costs and a person's decision to commute or perhaps work remotely are additional factors of the decision home buyers must consider."
When a nation is in recession, real estate typically helps in recovery. But given the weak economy combined with sustained high gas prices, real estate is not expected to get the country out of this recession. But it is definitely interrupting the pattern of unending urban sprawl in most metros.
Are gas prices influencing your decision about where you would buy your home? Are you planning to look for smart growth urban living communities? Let us know the choices and changes you are considering.
Home buyers are not only thinking about carpooling and taking public transportation to work, but they are also rethinking their long commutes to work. According to a Coldwell Banker survey of 1,188 of its real estate agents regarding buyer trends, 75 percent said higher gas prices are influencing homebuyers about their decisions purchase homes. 89 percent of the respondents said buyers want to look for homes closer to work, and a whopping 93 percent said buyers would choose to live closer to their work if gas prices continue to rise.
Since more employers are providing flexibility to work from home, more buyers are expected to look for homes which allow them to telecommute. In fact, 77 percent of the surveyed agents said more buyers are interested in having or creating a home office.
Since most buyers wouldn’t fancy living in their gas-sipping Toyota Prius, they are thinking about considering urban living. 56 percent of the surveyed agents said compared to 5 years back, more home buyers are contemplating urban living as a way of reducing their commute time and distance. The main attraction is the ability to walk to work, buy groceries and hop on public transportation. It is no wonder that smart growth communities are becoming popular in several metros. People seem to like the attractive mix of affordable, middle-income, and up-scale housing with restaurants, theaters, offices and retailers located within the community. Many of them are located near or close to a public transportation facility, which means people can walk to work, ride a bike or take the bus or train.
"The decision to buy a home has always been tailored around the personal, multi-faceted lifestyle needs of each buyer," said Jim Gillespie, CEO of Coldwell Banker Real Estate. "Today, rising fuel costs and a person's decision to commute or perhaps work remotely are additional factors of the decision home buyers must consider."
When a nation is in recession, real estate typically helps in recovery. But given the weak economy combined with sustained high gas prices, real estate is not expected to get the country out of this recession. But it is definitely interrupting the pattern of unending urban sprawl in most metros.
Are gas prices influencing your decision about where you would buy your home? Are you planning to look for smart growth urban living communities? Let us know the choices and changes you are considering.
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