The price of oil and its effect on the housing market

[Elena Jobson]

Do you think it is wise to invest in real estate markets where there is a high dependency on oil production? The housing market may be down, making homes more affordable, however unemployment may be going up due to layoffs (possibly creating tenancy issues and lack of job growth). What are your thoughts on investing in these markets? For example Houston, Pensacola, Baton Rouge etc.

[Fred Heller]

The general consensus I'm picking up is the market is cooling, but few people expect a collapse. And I'm still seeing homes getting scooped up in days, and usually at list or a little above.

HAR's housing stats for January show home sales in the $150,000 to $250,000 range were actually up 8%, while the over $250,000 market was down. The exciting news for investors is that the under $150,000 market is down substantially. And that's where most of the investors I know want to play.

Demand for SFR leases was up 2.8%. Townhome/condo leases were up 12.2%. Average SFR rent is up 4.2% to $1742. Townhome/condo rent is flat at $1568.

HAR Jan 2016 stats