Is Real estate gassy? Main Idaho Real Estate Insights

Location! Location! Location?

How closely will the real estate market buying trends be affected by rising fuels costs. Are people going to start re-thinking the value of living closer to work. The time factor alone of driving I84 at peak commute times surely has many people reconsidering their next move.Yes, I know it is nothing compared to other metropolises but that is one reason we live here. Is the consumer going to start calculating the cost of their commute and look at financing that by paying more for the home that is closer to work?

How much would you save living 10 minutes from work compared to 30 to 50 minutes depending on traffic? I live 10 minutes from my office and don't fight traffic? I am cheap as the next guy and hate filling the tank.I also have the opportunity to have lunch with my first grader at school and with my 4 year old at home, priceless.

You mortgage officers and CPA's are welcome to chime in here but what is the value of saving $50 per week in fuel alone. Now add in maintenance and depreciation. You can't add in cash but what is the value of having 2 or 3 additional hours freed up every week?

When gas reached its peak pricing, hybrid cars were much more in demand but then prices came down and the SUV became more appealing again. Gas prices are on the rise again and it is not summer yet, when prices are historically even higher. Will this affect the real estate market? How many are weighing the value of their commute time and expense.

Commuting to Boise from Nampa is also changing as growth trends are also changing. Nampa is becoming more commercialized and land prices remain drastically different than Ada County, at least for today. Job opportunities are on the rise. How many jobs are at the new interchange? Have you seen the professional offices next to the Idaho Center?

Another factor of the commuting issue is public public transportation. It does not look like we will see government intervention this year from what I hear on the radio. This might be a bit of a dilemma for the private sector to tackle unless enough businesses can get together.

So what do you think, is real estate gassy?

Posted by tlangford at 3/15/2007 11:57:00 AM
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