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22


Rising housing, gas and food prices are driving people out of their cars and back into town...

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The Economy is Hitting Home

The Economic Squeeze

 

 

Watch this interesting 2 minute video by ABC News, Diane Sawyer.


Rising housing, gas and food prices are driving people out of their cars and back into town...


The mortgage crisis combined with rising housing costs related to the sub prime crisis are really starting to hit home for many Southern California residents who still commute. With the price of gas now topping $4.50 per gallon at most Southern California stations this is becoming a very serious issue. I drive an SUV (which I still love, sigh...). Yesterday I spent $143 to fill the tank; can you say OUCH?!? That equates to over $600 per month in gasoline for me and I rarely leave the Long Beach area! Looks like I am going to have to think about a smaller, more fuel efficient car pretty soon.


By the way, has anybody else noticed that a tank of gasoline isn't going as far as it did? It seems to be burning up a lot faster these days. I asked a friend who works at one of the refineries about it, he mentioned that they are adjusting the ethanol content in the mix which causes the fuel to burn faster. Gee thanks George W!


Buffalo NY Realtor Colleen Kulikowski has not only noticed less miles per gallon, she reports that Mobil Oil is advertising no ethanol in their mix up in her area.  After experimenting she is seeing a better return on her miles per gallon.  Definately something to consider when deciding where to pump that liquid gold!  Hey Mobil, is that nationwide?  Or just up in Buffalo?


Many homeowners have faced or are facing foreclosure due to adjusting mortgages, which few can afford. This combined with the rising cost of gasoline, food (have you checked out the prices in the supemarkets lately - good grief) and just about everything else has just about everybody rethinking just about everything.


Many homeowners are interested in downsizing their homes, are seeking affordable housing and are moving closer to their places of employment; or are seeking ways to work remotely from home.


Long Beach Real Estate is affordable and beach close.  Oh and by the way, we have better weather down here at the beach.  Cooler in the summer, wamer in the winter.


What are you doing to ease the effects of the economy?

 

 


Laurie Manny
Long Beach Realtor

(562) 212-5420

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Main Street Realtors
Belmont Heights
244 Redondo Avenue
Long Beach California 90803

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Posted on June 22, 2008 19:04:50 by Laurie.Manny
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Comment from: Chris Shouse [Visitor] Email · http://realsummerlin.com

Laurie you are right about the cost of gas it is going to stop this country cold.  I heard an old country song this morning "CONVOY" it brought tears to my eyes the truckers move our food and so much more.  Like the backbone of America. Imagine what they are paying and how it is eating into already slim profit.  I also have an SUV and I feel safe in it.  We are not like Europe where the towns are close together and they have mass transit in place.  We live in the west  where the deer and the antelope  roam. Any saving people may have to put a downpayment on a new home is now being eaten up in putting gas in their cars.  I do not see any good end to this or anyone coming up with solutions. 

PermalinkPermalink June 22, 2008 19:41:54
Comment from: Stephanie Edwards-Musa [Visitor] Email · http://www.turninghoustongreen.com

Hi Laurie,


It is interesting to hear how gas prices are affecting other parts of the Nation.  I am starting to see a similar trend here where the suburbs take up a majority of sales for our city.  Kind of like a domino effect for all things we purchase, as you mention groceries and cars.  Personally, I am making changes in all aspects cost wise, I see clients doing the same.


Also, I was wondering about why the gas is burning quicker, mystery solved. :)


Reading your posts, Long Beach sounds like a gorgeous and convenient place to buy! 

PermalinkPermalink June 22, 2008 19:42:23
Comment from: Laurie Manny [Visitor] Email · http://www.lauriemanny.com/

Chris,  I don't know how this gas crisis is going to resolve itself.  Last week a tank cost me about $100 and I gasped.  This week when it cost me $143 I almost fainted!  I can't imagine how homeowners who are hanging on by a thread are going to handle this additional monthly expense.  It just strikes me that this may be the catalyst which sends many more homeowners over the edge into foreclosure.  We are all now faced with outrageous unplanned new monthly expenses.  I don't see a good end to this either.

PermalinkPermalink June 22, 2008 20:16:42
Comment from: Laurie Manny [Visitor] Email · http://www.lauriemanny.com/

Stephanie,  I find it inconceivable that the gas companies are tinkering with the gasoline mix at a time when they are also charging outrageous prices for the mix.  America is being held up.  As if it is not bad enough that prices are in excess of $4.50 a gallon, if you play in the faster burn of the mixture where does that leave us?  Maybe an actual $6.00 a gallon?  More?



It is my opinion that this is a criminal act that was sanctioned by the illustrious idiot who currently sits in power. 


Salaries across America have not kept up with the steeply rising cost of living.  Where the hell is the solution? 


How are Americans earning normal salaries, trying to feed and house their families going to make it?  What is going to happen to them when they cant?  Are we going to have more people living in the streets? 


Something has to bust!

PermalinkPermalink June 22, 2008 20:23:10
Comment from: Stephanie Edwards-Musa [Visitor] Email · http://www.turninghoustongreen.com

Laurie, I'm cracking up at your illustrious idiot comment.  :)


I don't think that many companies could afford to keep up with the rising cost of living, unless they are Exxon.  We have seen an enormous amount of relocation here because of the lower cost of living, but then to truck across town to work?  Which goes back to Chris' comment of sprawl.  It's affecting everyone from the Barista at Starbucks to the locally owned Grocery Store and Restaurant down the street and so on.


Either Exxon and other gas companies give up some of their insanely large profits that completely go against any rule of Economics, their tax breaks get taken away (which I can't believe they still have) or we learn to live with it as Europe has for years....and let our economy suffer.  I found Exxon/Mobil's statement in front of Congress a couple months ago nauseating.


The one positive thing out of it all, we are learning to conserve and not waste.  From gas to food. 

PermalinkPermalink June 22, 2008 21:05:49
Comment from: Laurie Manny [Visitor] Email · http://www.lauriemanny.com/

Stephanie, :-)


During the hot sellers market I listed and sold a lot of homes.  Almost every single seller was relocating out of state, many up to the Washington/Oregon area, some elsewhere.  All had in mind future retirement and a more financially and people friendly environment.  Average age of the sellers was early 40's.  Most went into either early or semi-retirement upon arrival in their new homes. 


They definately need to cool it with the huge profits, although a large portion of it is taxes as well.


While learning to conserve is great it's just not nearly enough, like we all said, soemthings got to bust!


 

PermalinkPermalink June 22, 2008 21:21:51

Laurie -- this is a problem that is getting worse.   I am starting to research the WNY communities that have access to mass transit and see how they are doing compared to those that do not.   It should be an interesting read when I get done...   Thanks for the mention!  As always a great topic of discussion!

PermalinkPermalink June 22, 2008 21:22:24
Comment from: Laurie Manny [Visitor] Email · http://www.lauriemanny.com/

Colleen,  Most communities outside of major metropolitan areas have insufficient or no public transportation.  While it certainly would solve some of the problem, that solution is 20 years into the future.  We need an immediate solution. 


I reember as a child when inflation went out of control the government would issue price freezes.  Funny how nobody is calling for government sanctions to freeze prices and save many of our citizens!  That seems like a more immediate solution while the details are ironed out. 


It just seems like everybody is out to gouge the public with no regard for the consequences, which will be felt and paid for by all. 


 

PermalinkPermalink June 22, 2008 21:27:57
Comment from: Kaye Thomas [Visitor] Email · http://www.Move2ManhattanBeach.com

Laurie as always you are right on target.    I believe we will see markets that are close to LA job centers begin to see improvement.  Long Beach is ideally located and will no doubt see an increase in home buyers who are looking for affordable housing near their work.

PermalinkPermalink June 24, 2008 02:14:19
Comment from: Laurie Manny [Visitor] Email · http://www.lauriemanny.com/

Kaye,  I just don't see how people are going to have a choice, if they don't move closer to work, they are going to have to choose between buying gas or paying the mortgage.  A hell of a choice, huh?!?

PermalinkPermalink June 24, 2008 02:54:28
Comment from: Miichael Bergiin - GWSleptHere [Visitor] Email · http://www.GWSleptHere.com

I just got a call from a client today about renting an apartment close to her office - she would use it during the week to avoid commuting and then go home to her family on the weekends.  That's a first for me.


Congratulations on being named one of the top non-Active Rain bloggers (and not for the first time).  I look forward to reading more.


Michael

PermalinkPermalink June 24, 2008 22:53:14
Comment from: Laurie Manny [Visitor] Email · http://www.lauriemanny.com/

Hi Michael, I've too have been receiving calls inquiring about purchasing small condos in town to reduce both the cost and the stress of travelling to work. I think we will all be seeing more of this as well as the downsizing.  Eveybody is doing what they can to cope.


Thank you. 

PermalinkPermalink June 25, 2008 00:21:14
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