Jun 9 2008 2:01PM | Permalink | Email this | Comments (0) |
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Last week, I wrote about the continuing price problems we're seeing in the suburbs and exurbs as gas prices rise. Bloomberg has more on that today.

The homeowners who have survived the slowdown, the sub-prime fiasco and resetting ARMs are now being hit by higher gas prices, and that's going to trickle down into everything. When people are spending hundreds of dollars more for commuting costs, they have less to spend on homes -- whether it's buying them or remodeling them. So it's no surprise that the National Association of Realtors said today that they expect the median home price to drop 6.4 percent this year ... a whopping increase from the 2.4 percent decrease the group predicted only a month ago.