Any thoughts how the oil price might affect the property market? My gut feeling is that oil over $55 for a sustained period will begin to erode the purchasing power of Jo Blo! I know it is definately eroding the margins in farming and unfortunately we have commodity prices that have risen yet but they will as more farmers are unable to make the figures work. The breakeven cost for growing wheat just became a whole lot more expensive because of oil in the last 6 months! Around 20-30% more costs! SO it is affecting the value of rural land! People just have less money to spend and the perceived risk is too great to overextend oneself!
