Amy Bernstein discusses oil prices and the real estate market with Culture Map’s Ralph Bivins. In this article, it is noted that, Houston’s robust job growth, with about 125,000 new jobs created over the last year, pushed the housing market to record highs in 2014. But the recent decline in oil prices means job growth will not be as strong in 2015 in Houston.
The price of West Texas Intermediate crude has fallen from a high of $107 a barrel last summer to almost $45 a barrel today. Due to the oil price drop, a number of energy companies, including industry giant Halliburton, have announced layoffs and cutbacks.
What will low oil prices do to the housing market in Houston, which is known as the Energy Capital of the World?
“The oil prices are on everyone’s mind,” says Houston real broker Amy Bernstein of Bernstein Realty. “But at this point in time, we’re not seeing any sign of a slowdown.”
Bernstein says some would-be buyers may be pulling back on their quest for a home, waiting to see what will happen to the housing market in light of the oil price crash.
But there is a steady stream of buyers coming to Houston because of job relocations and many of them are not employed by energy-related companies, Bernstein says.
Overall, Houston-area home sales in 2014 were up 2.8 percent over the sales total of 2013, which was also a record year.
The year ended on a strong note. The 6,451 single-family homes sold in Houston in December, represented the most homes ever sold in a December in this city. Last month’s sales were up almost 12 percent over December of 2013.
To read this article, please click here.