Does shaky oil market affect boom towns (ie Bakken shale)

[Phil Ferranto]

Hi everybody,

I like to see how macro trends affect investment opportunities. With an overall jittery stock market and energy prices at historic lows and continuing to fall further; how do you see that ultimately affecting real estate markets? Could there be consolidation in oil exploration industry or natural gas industry that will make certain real estate markets soft? Is this just a temporary blip that doesn't have a real impact on markets? I understand that every real estate market is separate unto itself, but how do larger macroeconomic factors present hidden opportunities (or build dangerous bubbles hidden to the average investor)?

[Jay Hinrichs]

@Steve Olafson 

  if one was in the Bay Area during the 89 quake and the war.. we had a mini melt down in RE prices.. that was basically regionalized.. many don't remember or knew of it.

But BAy area prices even on the peninsula  and SF dropped 50%... far worse crash than the 07 to 09 slow down the bay area experienced...

And it was based on perception... The Chinese buyers just stopped buying and that really affected the Peninsula.  it took about 5 years to recover and by the time of the dot com blast off price were back to 89 highs.. then a little retreat in dot com and 911.. then blast off again until 07 to 09... now we have seen another large run up.

Were as here in Oregon its just steady Eddy.