Oil prices are affecting housing prices

By
Real Estate Agent with Coldwell Banker RS318386

Depressed oil prices are becoming a real drag on some housing markets.

On a national level, homes are moving off the market faster than in 2015, according to a Trulia report analyzing the 100 largest U.S. metro areas.  But in oil-heavy housing markets, the "for sale" signs are staying up longer than they used to.  The prolonged drop in oil prices has hit Houston's housing market the hardest, with around 66% of homes still on the market after 30 days in April compared to 50% last year.  The city, which has a median asking price of $182,500, has the second-largest oil industry in the U.S., according to Ralph McLaughlin, Trulia's chief economist.  "It's a combination of demand side decreases because of the drop in oil, and supply side increases because the city builds so many new homes," he said. "Those effects combined make for a pretty noticeable drop."  Homes are also staying on the market longer in Oklahoma City, Tulsa and Forth Worth, Texas, which round out the five cities with the biggest employment ties to oil.  Oil companies have been forced to reduce their workforces in the wake of lower prices, which has had a spillover effect on the local real estate markets.

Can you think of anything that would affect your market in a similar way?  How are you educating your customers to these potential valleys in the market place?  In Pennsylvania we have home owners dealing with fracking and the long term results of drilling to access natural gas pockets.  Some things are unavoidable, but if you stay informed and keep your buyers and sellers educated you will build the required trust to get them through the valleys.

 

Coal Infantino

Coldwell Banker

Article credit to CNN Money, Kathryn Vasel

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Coal Infantino

Coldwell Banker

1499 S.Queen St York, PA 17403

(717) 854-9242 Office

(717) 676-5545 Cell

Callcoalyork@gmail.com

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Rainmaker
1,838,670
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Interesting tie in between Oil & Real Estate ! Locally gas has been creeping upward ! 

May 05, 2016 03:22 AM #1
Rainer
59,896
Coal Infantino
Coldwell Banker - York, PA
Realtor specializing in south central PA

My first thought was about what kind of local things would be impacted by national commerce.  I thought of fracking and how it has affected those out west.  It really made me think outside the box

May 05, 2016 03:38 AM #2
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801,340
Mimi Foster
Falcon Property Solutions - Colorado Springs, CO
Voted Colorado Springs Best Realtor

Wonderful post, Coal. In our market, we are so grateful for our military bases (we have five). Whenever there's a threat of closure, it's a real possibility of an economic downturn.

May 05, 2016 12:40 PM #3
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3,678,450
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Coal, here in DC, our main product is hot air, so our housing market is really doing well!

May 05, 2016 12:51 PM #4
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Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Coal- I went through this in the 80s in Houston (I'm a native Houstonian living in Florida).  Companies were laying off employees, and not just oil companies either. It's a ripple effect and everyone can be affected. I don't know about South Florida and how the housing market would be impacted.  BTW Loved Patricia Kennedy comment. 

May 07, 2016 08:24 AM #5
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Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

 

                    Thank you Coal Infantino for my ah-ha moment. 

May 07, 2016 12:06 PM #6
Rainmaker
2,676,856
Debbie Gartner
The Flooring Girl - White Plains, NY
The Flooring Girl & Blog Stylist -Dynamo Marketers

Great insights here.  I guess for us, right outside NYC, wall street and wall street bonuses tend to have an impact.

May 07, 2016 09:59 PM #7
Rainmaker
3,156,692
Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

Great post!  I can see why Kathy included it this week in her weekly summary!

May 07, 2016 11:36 PM #8
Rainmaker
1,943,460
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Coal - yes while is feast for some it is famine for others.  I saw it with one of my clients in Southern Louisiana.

May 08, 2016 10:24 AM #9
Rainmaker
2,503,399
Rebecca Gaujot, Realtor®
Vision Quest Realty - Lewisburg, WV
Lewisburg WV, the go to agent for all real estate

Hi Coal, here in West Virginia, coal mines are closing and many miners are without jobs. The market is doing fair here in my county which is more agricultural and has the Greenbrier Resort and the WV School of Osteopatchic Medicine.

May 08, 2016 11:52 AM #10
Rainmaker
1,675,919
Winston Heverly
Winston Realty, Inc. - Atlantis, FL
GRI, ABR, SFR, CDPE, CIAS, PA

Great post with a lot of helpful information to absorb. I'm glad I came across it in the archives.

Jun 03, 2016 09:53 PM #11
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Rainer
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Coal Infantino

Realtor specializing in south central PA
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