Price of Oil / Price of Real Estate

[WilliamL]

Do you think the price of oil affects the price of real estate or are the two markets running on their own supply and demand?

[Philly]

I think it does in a way even though they are two different markets. If you cannot aford to buy gas then you are less likely to buy a home far away from your work or even spend money on a new home.

[admin]

I am with Philly on this one anything that reduces consumers disposable income will affect the amount they spend on any good. Therefore, high oil/gas prices will at least impact property values of homes a distance from the city core. Far out lying suburbs are the most likely to be affected.

[Johnny]

Not if you have oil stock! Global markets have made it so that one affects the other, there is no escape, so everyone has to keep their ends stable.

[shibuya]

Of course oil prices practically affect every economic aspect of our life through trickle down effect, but I would say that there is no direct correlation (positive and negative) between oil and real estate prices.