Majority of home buyers looking for houses closer to work

High gas prices have caused many consumers to rethink where they want to live, according to a recent survey by Coldwell Banker Real Estate.

According to the survey, 75 percent of Coldwell Banker agents said that the recent spike in gas prices has influenced their clients’ decisions on where to live and 93 percent said if gas prices continue to rise, more home buyers will choose to live somewhere that allows for a closer commute to their work.

Realtor® Cindy Root said she’s had several clients who have changed their focus of where they’re looking for properties. Root, with Coldwell Banker Select in Cleona, said, “I’m seeing more people who are considering their drive to Harrisburg and re-thinking where they need to live to cut the commute.”

Out of those Realtors® who said gas prices affect where consumers want to live, being closer to work was the leading consideration.

Drive time and racking up miles en-route to the office caused 89 percent to say buyers look for homes closer to work. Forty-five (45) percent are seeing buyers choose homes closer to shops and services as a result of increasing gas prices.* Some buyers are skipping the commute altogether.

More than three quarters of the real estate professionals surveyed (77 percent) said more buyers today are interested in having a home office compared to five years ago and 68 percent of those respondents said that they believe the high cost of gas contributes to this new work from home trend.

Root said the gas prices are also affecting how people are going to look at homes. “I would usually meet people at the location but they want me to drive them. I’m also doing more office-to-office referrals because another agent may be closer to the property than I am,” she said.

Paul Wenger of RE/MAX Associates of Lancaster also sees clients less willing to drive by a property on their own.

“The higher gas prices have raised awareness of utility costs, heating and taxes,” Wenger added. “I think buyers are more cautious overall and the higher gas prices just compounds the issue.”

Root agrees, “More clients are asking what it will cost to heat a home, or how far a drive it is to their office. And the younger clients want a home where they can walk to a restaurant or make a quick trip to the grocery store. They’re readjusting their lives accordingly.”

The second home market in central Pennsylvania has been affected as well. Realtor® Jim McLane said most of his clients are from the Harrisburg/Lancaster/York region, all within driving distance to the Pine Creek Valley second home market. “Sales are noticeably down this year but it may also be a combination of the bad weather we’ve had this spring in combination with the increased traffic we’re seeing with the Marcellus Shale development,” McLane, with Fish Real Estate in Williamsport, said.

Relief from the higher gas prices doesn’t seem to be in sight, as The Associated Press reported that gas prices climbed to $102 a barrel on May 31, up from $96 the previous week.

*Some answer percentages in the above may not total 100 percent, if only the most popular responses are listed. In other cases, respondents had the option to check all that apply, which may mean that percentages total more than 100 percent.