I have thought for some years that the cost of living “in the country” would eventually rise.  The reason is that if gas were $5.00 per gallon the cost of commuting from distant suburbia to the employment centers would have  a large affect on the property owners ability to make their mortgage payments and have enough disposable income to maintain “the good life.”

Gas is now approaching $4.00 per gallon.  I am seeing some indicators that the stampede to the inner city neighborhoods is picking up speed.  I have looked at some distant suburban areas lately with 300 to 600 day marketing times.  This has been caused by various circumstances.  However, gas prices appear to be part of the cause.  Last week I looked at a 100 year old, 1,100 square foot, inner city house on a 5,000 square foot lot.  The house was in average condition and nothing special at all.  The three sales comparables used in the report sold in 11 days, 15 days and 35 days.  That ain’t bad in such a market as we have seen in the last year.

I’m calling this a big “buy” indicator for the inner city areas with good public transportation availability.

We’ll see.

Ralph Olsen, Appraiser

Pacific West Appraisal Services, Inc.

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