In a national survey of 900 Realtors, 96 percent think rising gas prices concern their clients and 78 percent say higher fuel costs are increasing buyers’ appetite for city living.
We asked: Do you agree with the survey? If so, why? If not, why not?
“I agree with this. However some buyers will still continue to budget for high gas prices. I just had some buyers to make an offer on a home in St. Augustine over the Memorial Day weekend. I pointed out that he works in Baymeadows and that his wife, who currently works in St. Augustine, is looking for a job in Jacksonville. I asked if they had considered how that would impact their budget. His response was that he had prepared a budget based on $8 per gallon gas. Yikes!”
— Dee Bumbarger, Buck & Buck.
“Yes, the buyers I’m working with want to be closer to work, schools and shopping. I also would like to move closer to my office but because of the housing situation and the lower market values, I can’t sell my house at this time. I do make sure my buyers are pre-approved for a loan before taking them out and spending my gas. I spend approximately $60-70 dollars a week on gas between showing properties and going into the office.”
— Cammie Thomas, Exit First Coast Realty
“I think this is more of a large urban phenomenon where they have mass transit. Jacksonville is growing but not on that scale yet. Most buyers in our area expect to do a lot of driving, whatever the price of gas at the pump.”
— Ben Walker, Country Club Real Estate of Ponte Vedra
“Certain people in this area will accept city living, others will pay the cost to drive. People are being more conservative and cautious, regardless of where they buy. Most buyers want a bargain, a foreclosure or a short sale, something that makes them think they are getting their house for a ‘steal’. Houses like that are more prevalent with in the city limits. ‘Country folk’ are settling for less. Less land or less house, but are still reluctant to give up space, quiet, and the different lifestyle the country allows. We are not to that point yet in this area. They are more likely to stay home, once they get there, instead of going ‘back to town’ for dinner, shopping, the movies, etc. They are more likely to just buy a smaller, more economical truck next time.”
— Joyce Roberts, Americom Realty
“I agree with the survey. In fact, on the news the other evening there was a story dealing with exactly that issue. It detailed a recent trend in the Boston area where suburban home prices are dropping while urban prices are on the increase. It would appear that unless small industrial centers in the suburbs are developed that can provide ‘local’ employment opportunities, people will start moving back into cities where less-expensive, public transportation is more readily available.
“Of course, there are still going to be plenty of buyers who would rather spend the extra money on gas than live in the inner cities where crime tends to be more prevalent. In addition, there is also the matter of the quality of schools and other issues that come into play.
“The bottom line is simply that we North Americans have enjoyed relatively low gas prices for decades, and now our affordable ride has come to a screeching halt. It might be a good idea for us to focus less on energy exploration and more on efficient public transportation such as is available throughout Europe where people take buses and trains and mopeds and bicycles or walk to their place of work.”
— Elke McMenemy, St Augustine Real Estate Inc.
“I’m hearing some discussion about gas prices, but more of the same discussion we usually hear in northeast Florida: Where is the best community for my family and my lifestyle, how long will it take me to get to work and what’s the traffic like? It might be different if we had a metro rail system or something that encouraged mass transportation. To date, we’ve not been successful as a community promoting that to our residents. I’d like to turn the tables and have you ask sometime how the agents are dealing with the gas prices. I’ve heard that some agencies are thinking of charging a fee the first time they go out with a customer, which is deducted from commissions earned at closing of a property. The theory is that that covers an agent’s expenses in case the buyer doesn’t buy.”
— Clare Berry, Berry & Co. Real Estate
“That’s why Nocatee – a live, work and play community - actually a new town - is a great idea.”
— Portland Stuart, The PARC Group
“Rising gas prices seem to be more of a concern than a sales generator in our market. Before our market has a ‘European approach’ to purchasing homes, we need to have a European approach to life. That means smaller cars and a mass transit system that actually takes you somewhere.”
— Carrie Budds, Wells Fargo Home Mortgage
“I wholeheartedly disagree with the statement that higher gas prices are a silver lining, since up to now we have been lagging the Europeans. Americans, I believe, do not lag behind Europeans in energy matters. We chose to find alternate energy sources and even applications as we call for more domestic oil drilling for a short term relief to foreign oil and the funding of terrorists Europeans have chosen to accept high energy prices for so long due in part to complacency. Americans chose to be inventive and resourceful as we continue leading the world.”
— Larry R. Atwell, Vanguard/GMAC
“Jacksonville buyers don’t seem to have made a huge correction due to commutes but the neighborhoods near major businesses and retail centers stand to improve dramatically (such as near downtown Jacksonville and the St. Johns Town Center) as fuel budgets become more of an issue. I also hope the Green Movement will drive more improvement in the historic areas, since the city infrastructure and services are already in place.”
— Jon Singleton, Watson Realty Corp
“Energy prices will be a stronger consideration of the buying and selling process. Some years ago, people who worked in Atlanta started buying lofts and converting old warehouses to residential properties because of the long traffic delays during rush hours. As a result, those inner beltway properties increased in value and retailers followed with dry cleaners, grocery and the rest.
“Distance to work, what you drive to work, mass transit, energy efficient homes, multi-family units, downtown condos, lofts, commercial conversion will be in our future due to rising energy cost.
“Now is an excellent time to start thinking, ‘How can I get ahead of the curve? Where are the work centers? How can I be more knowledge about energy efficient construction?’ Those who can adapt to changing markets the fastest will benefit from the change.”
— Terrell Newberry, Coldwell Banker Walter Williams Realty
“I agree that city living is more attractive to buyers working within city limits. My Avalon requires $60 per visit at the gas pump. With the cost of food and fuel rising, gas cost may be manageable for those lucky enough to purchase a home close to their job. High gas prices can help bring life to downtown Jacksonville as people will opt to live closer to work and developers-investors will support their needs by bringing in restaurants, theater, night clubs, fitness, etc.”
— Jacqueline Harris, REM Innovations