If gas prices are any indicator of what's going to happen to housing, then home builders should listen to what new car buyers are planning to do.

The latest Kelley Blue Book Marketing Research study says that high gas prices are affecting new-car shoppers to the point that they're changing their spending habits. Nearly half said that they would buy a new fuel-efficient vehicle if gas prices increase much further.

Since October, new-car buyers are eating out less often (53 percent), joining more carpools (15 percent), shopping less for non-essentials (65 percent), and media entertainment (48 percent.)

But interestingly, only 10 percent say they are delaying the purchase of the biggest ticket item -- a new home.

That should be good news for home builders, which has just reported continuing slow sales. The Census Bureau says that March sales were down 8.5 percent from February and 36 percent below the same period in 2007. That's 62 percent below the peak month for sales set in July 2007.

Good news for homebuyers -- inventories rose to an 11-month supply, the most in 27 years, mostly due to competition from foreclosures and existing home sellers pricing their homes more attractively. But prices for new homes are getting more attractive too, having fallen 13.3 percent year-over-year to $227,600. That's the biggest discount in 38 years.

This followed equally sour news from the National Association of Realtors that home sales in March dipped two percent, down over 19 percent from March 2007. Inventories rose one percent and are now at a nearly 10-month supply.

Both the National Association of Home Builders and the National Association of Realtors blamed the credit crisis for discouraging home buyers.

But this too shall pass.

Since the Kelly Blue Book study, oil prices hit $120 a barrel, rice is being rationed at Costco, and food prices are out of control, but Wall Street pundits who anticipate the markets are starting to call for a bottom in housing and in stocks. On Marketwatch yesterday, no less than three articles featured headlines or quotes suggesting that the panic over the credit crunch is over. Housing isn't as nimble as stocks, so it could take a few months.

Published: April 25, 2008

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Blanche Evans is the award-winning senior editor of Realty Times, the Internet's leading independent real estate news service. She is featured daily on the Realty Times Video Network in the "Realty Viewpoint" segment. Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, and has been twice recognized as a "notable." In 2005, she was named "Top Reporter Covering the NAR" by Delahaye-Bacon's. Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. To contact Blanche, email her at . For more articles by Blanche, click here.