A new study found that real-estate agents won’t drive far to market a property when the cost to fill a tank is high.
The Wall Street Journal reports that faculty members at Longwood University and Florida Atlantic University studied the relationship between gas prices and home prices. For every $1 increase in gas prices, home prices drop by $4,060, the working paper states.
“This effect is even more pronounced when a relatively inexperienced agent is handling the sale: The study finds that in such cases, a $1 rise in gas prices translates to a roughly $6,600 decline in house prices,” The Wall Street Journal adds.
The hypothesis is that real-estate agents won’t market a property as aggressively when gas prices are up.