Gas Prices and Home Prices in New Jersey

Posted at 1:35 PM, Apr. 25, 2008

I live about a 20 minute drive down the Garden State Parkway from my office. The last 2 evenings, on my commute home, I've noticed long lines waiting for fuel at the closest "Food & Fuel" on the Parkway. The reason for this; gas stations at the "Food Fuels" on the Garden State Parkway & New Jersey Turnpike are only allowed to increase their fuel prices weekly, instead of daily or hourly like the private sector. So, as local gas prices have risen about 25 cents a gallon in the last week, these "Food & Fuel" gas prices were too much for many commuters to pass up. This particular "Food & Fuel" actually needed State Troopers to pull traffic duty last night...don't worry taxpayers of NJ, Thursday's at midnight is the price adjusting hour...the carriage is a pumpkin once again!

What does all this have to do with real estate? These commuters, who would rather spend 40 minutes to an hour waiting to save 25 cents a gallon rather than spend that same time with their family after a full day's work & commute, are our Sellers and Buyers! Think about it; for cents on the dollar ( OK, it's 25 cents in this particular case) they will deprive their families and themselves of the most important commodity of all; time with the people that matter the most!

Is this behavior unlike the Seller who refuses to negotiate with a ready, willing & able buyer because they didn't offer them 2005's price for their home? This Seller would rather "wait on the fuel line" than get on with his, and his families life because he doesn't understand that the "25 cents" he's afraid to lose, will be washed out on his purchase on the other end.

Or today's buyer, sitting on the "fuel line" trying to time the market? Why can't they accept that even if prices do fall another "25 cents on the dollar", rates will eventually rise and their monthly payment will cost them more? Not to mention that the new mortgage regulations regarding down payments in "declining markets" have taken more than a few "fuel line sitters" right out of the market altogether!

Me, I'll keep driving forward, thank you.