Prices Are Affecting the Moving Process And the Real Estate Market

A BRIEF OVERVIEW

With such outrageous fuel prices these days, it makes perfect sense why people are moving into communities closer to where they work and shop. Another downside of high fuel prices is that so many of our foods and other consumable products have been steadily rising in price. For the truckers who are moving around the country and driving hundreds of thousands of miles a year, fuel prices are becoming crippling. We will now start to take a more in depth look into all of these very important issues that affect the real estate market as well as your local moving company.

HIGHER FUEL PRICES HURTING MOVING COMPANIES

For the business owners of moving companies and trucking companies, the high fuel prices are crippling.

Many companies have already gone under while the ones who are still afloat try to cope. It is getting more and more difficult for these companies to try and incorporate higher fuel prices into their daily operating expenses. Since this particular industry always had a fairly low profit margin, the cost of fuel prices are almost surpassing their labor costs. That is a terrible recipe for disaster. Early this year, the American Trucking Association has deemed this problem a "national fuel price crisis." And they seem to be on the right track. For example, fuel prices have risen 18% this year, while diesel has risen an astounding 26%. Now we will see how these higher fuel prices will affect your cost if you are planning on moving.

Moving your household goods will cost more than last year. Moving companies have to charge you a surcharge.

The specific rates are determined by government and are only used when moving from state to state. You will be able to see your rate printed on your bill or estimate. The major reason for fuel surcharges is simple customer service. These moving companies use the surcharge to help offset high fuel prices instead of trying to cut labor costs.

FUEL PRICES ARE NEGATIVELY AFFECTING THE REAL ESTATE MARKET

Because of high fuel prices ant their affect on the real estate market, potential homebuyers are taking a look into the proximity of their home in correlation to where they work before moving there. They are definitely taking into account the skyrocketing fuel prices when looking where to purchase a home. There is a growing trend in the real estate market developing with suburban homes. It seems that, since they are farther away from cities and job markets, they are loosing value. And that trend in the real estate market will continue as long as gas prices continue to increase. For decades, suburban homes in the real estate market were built farther away from urban areas with out regard for fuel prices. So it really does seem like high fuel prices are having a negative impact on the real estate market. Gas prices have gotten so high that people have less money to spend on anything, let alone a buying a home.

NEW TRENDS HELPING COMMUTERS COPE WITH HIGH FUEL PRICES

Another trend forming due to higher fuel prices affecting the real estate market is buying smaller homes on smaller lots. These homes are also located near metropolitan areas and public transportation. Another interesting fact in the real estate market is that more people are shopping extensively online for properties instead of driving around first. A real estate agent in the New Jersey real estate market reported an 85% spike in this trend this year alone. One more interesting trend in the real estate market its infancy now, but we may see a lot more of it if gas prices climb higher. It will be energy efficient hosing. This is a totally new trend in the real estate market. This may be a new alternative for those homebuyers who still want to live in the suburbs, but want to keep energy costs in check.