CapitalismWorks_IHB
New member
One of the central tenants of the further decline in Irvine R/E is based on the substitution effect of near-free units in the Inland Empire is effectively dragging down prices in more ideally located places. For example, "If they are giving away houses in Corona, would you live there?". The corrolary is that there is some price differential that is reasonable between Irvine and the IE. Well, with gas prices through the roof the relative attractives of the IE (or has been discussed Ladera, Talega, etc.) is diminished, raising the premium buyers will be willing to pay for premium locations.
How supportive are higher gas prices for Irvine in the short run? How about the long run? Does the increase in value for better locations based on gas savings offset the overall decrease in funds available to service housing debt due to increased energy costs?
How supportive are higher gas prices for Irvine in the short run? How about the long run? Does the increase in value for better locations based on gas savings offset the overall decrease in funds available to service housing debt due to increased energy costs?