An anticipated spike in gasoline prices this summer could negatively affect home prices while damaging consumer confidence, Forbes reports.
Industry experts revealed to Forbes that they anticipate gasoline prices to increase to approximately $4 per gallon at the peak of summer. As a result, consumer spending could fall as more households feel the squeeze on their disposable incomes.
While home prices tend to be highest during the summer months, this could be a negative factor for prospective homebuyers.
"If gas prices peak in the spring or summer, that could hurt consumer confidence during the prime months for home buying," Trulia chief economist Jed Kolko told Forbes.
Kolko added that a rise in gasoline prices could discourage potential buyers from purchasing homes in outer suburban and rural areas since it could result in a longer, more expensive commute.
Additionally, as the government examines laying down the foundation for programs that would turn foreclosed houses into rental properties, rising gasoline prices could hurt these efforts since many of the properties are in areas far outside of urban centers.