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Saturday, February 7, 2015

Cheap Gas Prices and the Tucson Real Estate Market

"Crashing Oil Prices to Hit Home-Price Appreciation"

Tucson Gas Prices for Saturday, February 7
That was the headline of a recent article suggesting that crashing oil prices in the oil patch states would lead to a crash in the oil production business and take the air out of the real estate market in those areas.

But closer to home, what will the cheaper gasoline prices mean for the Tucson homes market? Back during the boom days of the earlier 2000's, there was a saying in real estate and for many buyers..."drive 'til you qualify." And what they meant was that many buyers were willing to drive long distances to new developments in Red Rock, Vail, Sahuarita and even Benson in order to find less expensive homes for which they would qualify for a home loan. The trade-off was a long commute from jobs in Tucson, but many buyers were willing to take that on. But when the market crashed, those far-flung developments were among some of the worst hit for foreclosures and short sales as the appeal of those long commutes, coupled with plunging home values and rising gas prices, lead many of those homeowners to just give up.

So today we are back with cheap gas prices (and cheap loans with low down payments.) Are we going to see buyers seeking to take advantage of the cheaper prices of distant homes and gas once again?  It is a little early to tell, but stay tuned.

And if you are looking for the cheapest gas in Tucson for your commute home, check out            Tucson Gas Prices.

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