Effect of Gas Prices on Magnolia TX Real Estate
As everyone knows, the effects of the downturn in our economy in recent years have been countless and devastating to many. From unemployment and foreclosures to tightened and often-slashed budgets for education and municipal, state, and municipal services, Americans face a distressing situation, one which has given rise to multiple theories as to both its root cause and its future.
Among the victims of the economy has been Magnolia TX real estate—and all those involved with that field. Brokers, realtors, buyers, sellers, renters, inspectors, and investors, for example, have been caught in a fluctuating, unpredictable, and sometimes unforgiving market for the last few years now. Most have stayed the course, waiting for conditions to improve. And things are, indeed, looking brighter. New housing starts are up, interest rates remain low, home prices are beginning to stabilize, and mortgage applications are increasing.
And then gas prices began to soar, possibly derailing any progress that has been made. How will this latest assault impact the Magnolia TX real estate market? Although some experts believe that the higher prices at the pump will not deter potential buyers who are mentally and financially secure in their plan to purchase a home, others take a less rosy view. According to economist Chris Cagen, “I think higher gas prices will impact home buying this year, particularly at the lower end. It isn’t just the tightening of money. Higher gas prices affect people’s mood on a direct and frequent basis. They send a signal about the economy and about what the future itself may be like. This makes people more cautious and will hold some people back from buying.”
Location of purchased Magnolia TX real estate will also become a factor. In a recent Coldwell Banker survey of its brokers and agents, three-quarters of respondents said the recent jump in gas prices had influenced where their clients chose to live. The main client concern was commute time to work: 89 percent of respondents said buyers look for homes closer to work, and 93 percent said a continued rise in gas prices would prompt more homebuyers to choose to live where commute times are shorter.
There is even one study done by economists at the University of California, Berkeley, and Oregon State University which suggests that the U.S. housing crisis that started in 2007 and eventually led to a worldwide financial crisis was triggered by rapidly rising gas prices. Their paper makes for very interesting reading.
Whether you are new to the Magnolia Texas real estate market, thinking of moving up, or you’re an experienced investor, Pam Sitterly has the expertise, proven track record, and resources to help you buy Magnolia TX real estate for saleor market Magnolia TX homes for sale. Enthusiasm, knowledge of the area and personal concern for her client’s interests combine to make Pam an outstanding resource for your real estate transactions.
Pam works extensively to help Buyers and Sellers meet their Magnolia Texas real estate goals. For more information about buying or selling your Magnolia TX home, please call Pam at 281-723-0324 or via email with this convenient contact form.