Nashville Real Estate and the $4 Gallon of Gas!

I'm originally from England and the price of gas in the US (petrol for me) has always been a source of envy for the Brits. The price per gallon in England ( although they use litres now) is probably close to around $6! The effect of this is to drive the auto makers to produce smaller more economical cars.

The hybrid seems to becoming more and more popular and as the $4 gallon looms ahead I'm seriously considering trading in my gas guzzling Navigator for a green machine ....saving me some green too...as well as helping to save the planet :)

The other aspect of the rising price of fuel is the impact it has on the buyers decisions when it comes to choosing the next home and the location. In the past if some one wanted a 5 bedroom home with a couple of acres they would realize that the closer they got to the downtown area the more expensive that property became. Now the buyer is having to rethink the desire and need for that extra acreage and are now factoring the transportation costs into the affordability of the homes on the outskirts of town.

Now the distance is becoming more of a cost consideration and will help to raise the demand for downtown homes and as a result increase the value. The flip side is that the homes that were considered to be good value will now have to take into account that the buyers are considering the costs of living so far out. As a result the homes will have to priced in order to overcome those travel costs objections and that means reductions!

That may be a very over simplified look at the cost of gas and it's impact on real estate but in Nashville the condo boom may start seeing lots of willing and gas consious buyers starting to see the appeal of a short commute and cool downtown views instead of the traditional suburban community.

Only time will tell...and maybe the falling interest rates will some how compensate for the rising gas prices when it comes to determing the most cost effective place to buy a new home ;)

• Rate this Post!

  Select Your Rating:

  • 5 Stars (Excellent!)
  • 4 Stars
  • 3 Stars
  • 2 Stars
  • 1 Stars (Poor)

• Share this Post

  Share With A Friend:

  Your Name Your Email

  Friend's Name Friend's Email

  Optional Message

  Send

• Print
• Social Bookmarking

  Add to Bookmarks: