This year’s record declines in the oil and gas business affects many other industries, real estate included. But the effects may not be as dire or drastic as the population assumes.

The most obvious effect I’ve seen as a Real Estate agent is the dip in consumer confidence. Times are a little uncertain as people lose their oil- and gas-related jobs, leading to less people taking risks of buying and selling their homes. The “buying intensity” has dwindled as people watch and wait for the turbulence to settle. Some downsize to a smaller, more manageable home — playing the market safe. This does, however, leave room for opportunity for buyers who have been waiting for a lull in the market, having to fight less competition for available real estate.

Prices this year are expected to stabilize due to the current economic conditions balanced out by the decent amount of homes available on the market — the supply isn’t large enough to create an all-out buyer’s market.

Sure, home sales won’t be as strong as they have been in the past six to seven years, but neither are they going to drop to 1980’s doom-like records. In fact, they will maintain a steady, if slightly slower, pace. The continued growth in Houston, the increase in the petrochemical sector, the changes in the city’s infrastructure will all aid in the real estate industry’s success. A strong market is definitely in our future.

Article Citation: Bivins, Ralph. (January 2016.) “The Impact of Low Oil Prices on Houston Single-Family: Q&A with Mario Arriaga, 2016 Chairman Houston Assn. of Realtors.” Realty News Report. Retrieved January 27, 2016 from: http://realtynewsreport.com/2016/01/24/the-impact-of-low-oil-prices-on-houston-single-family-qa-with-mario-arriaga-2016-chairman-houston-assn-of-realtors/.
Picture Citation: http://extras.mnginteractive.com/live/media/site36/2013/0726/20130726__20130728_K1_BZ21GREELEY~p1.jpg