Gas Prices Affecting How You Buy A Home Or Car

[In Business]

Before the boom in gas prices, people would buy a home further and further into the suburbs to afford a bigger home and avoid the smog. Now with the onslaught of enormous gas prices, people are now returning to urban cores or finding homes that are closer to their jobs. Sitting an hour in traffic is now a luxury that most people can't afford.

This new home buying trend is not surprising but a car purchase is really far from surprising. Nowadays, you can't give a gas guzzling car away. In fact, some dealerships are now no longer accepting SUV trade ins. Another natural change is the long list of people who want a hybrid car.

As these gas prices hold you hostage and you find your available funds shrinking, you must ask yourself whether you can afford to live like you were doing or must you change?

Don't expect things to get easier. They are now predicting $5 a gallon gas. If you drive a diesel you've already been there for a while. Then everything you purchase has to now increase in price since it costs more to ship. Hold on tight, its not over yet.