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Petrol price rise, What does this mean to the housing market

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  • Petrol price rise, What does this mean to the housing market

    Hi All

    Has been a while since my last post as have been busy with finding
    a IP investment, still no luck.

    It brings me to start this thread about what effects the rise of petrol
    prices will have on the housing market.

    Does anyone think this will effect the house prices and if so how will
    this effect the price and why?

    Will be interested to know.

    FH.
    Home Buyz
    [email protected]

  • #2
    I am no economist, but I will give this a go.

    I dont think petrol prices will have much direct effect on house prices.

    However, as transport costs increase, the cost of pretty much everything will go up. Even the price of a can of baked beans. Someone has to transport the baked beans to the factory, and then from the factory to the distributors and shops etc. So increasing costs of transport will filter down to the consumer.

    Increasing general costs will increase inflationary pressure, and may cause the reserve bank to increase interest rates again.

    Increased interest rates has the effect of slowing down the housing market, which may cause the prices to drop slighty or slow down the increases.

    I dont think 5c a litre is going to have much affect, but if the US currency goes back down like it is expected to do, petrol prices will probably go up even higher.

    Comment


    • #3
      The biggest risk is a sudden spike in oil price to a very high level. That may cause widespread price hike and the Reserve Bank has no alternative but to raise the interest rate which will dampen the housing demand.

      Comment


      • #4
        Until everyone notices that the emperor has no clothes, I will remain Cashed4crash

        Comment


        • #5
          At times when the international price of petroleum is at record high - one could ask the question - Should the govt reduce the petrol taxes to ease the burdon for the voters.

          OC

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