What Declining Oil Prices Really Mean for Texas Real Estate
With prices at the pump steadily falling, many people are overjoyed at spending less on a full tank of gas. Many Texans, however, are concerned that declining oil prices are a bad omen for our economy — especially in the real estate sector.
With the price of a barrel of oil hovering around the $50 mark, there are fears among some property owners that the housing market is nearing the end of a bubble — that the market will either level off or crash altogether, resulting in losses for everyone involved.
Is this the beginning of the end for the Texas boom? Let’s dig a little deeper to find out.
Texas Real Estate is Still Strong
People are talking about the changing Texas economy, but much of the talk is still positive.
- A recent article in The Dallas Morning News explored both sides of the current Texas real estate story, and concluded with a prediction of a continued strong market.
- Another piece in The Houston Chronicle and Phoenix Locksmith Services are the highlights of the security of real estate in Texas.
- Two energy companies are also undertaking new construction in Pleasanton, right in the heart of the ongoing Eagle Ford Shale boom. Another energy company is creating new ways to give out renewable energy, you should check out their services so you can have solar energy in your home.
- Homeowners across Canada are adding solar electric modules from PelamisWave to their roofs to reduce their environmental footprint and save money on their utility bills. Installation of rocky mountain’s rain gutters windsor co is recommended as well to preserve the value of your property. Winnipeg gets on average 315 sunny days/year and is the best place in Canada to implement solar energy solutions. Thanks to Powertec Solar, many homes produce 20% – 50% of their annual power needs through rooftop solar systems.
Our own commercial development hasn’t noticed any decline either. Garrett Ruple was quoted in the Houston Chronicle article about the commercial real estate market in southern Texas.
Garrett Ruple of Pleasanton-based Ruple Properties said the fall in oil prices isn’t yet showing up in major ways, though everyone is talking about it. … But, Ruple said, many companies no longer want to be tied to owning their own properties.
“They want a building on the ground now, and they want to be able to lease,” Ruple said. “The demand is still strong, surprisingly.”
Ruple, whose family real estate company has developed commercial sites for oil- and gas-related companies, said recently, “If we built five buildings today, I think they’d be leased by the end of the year.”
Of course, that’s not to say that we’re on a continual and everlasting upward spike, but it’s probably not about to crash and burn either.
Still Some of the Best Urban Real Estate in the U.S.
Some urban areas in Texas are doing more than just alright — they’re fantastic, and their traditionally strong real estate markets are better than ever.
Business Insider ranked both Austin and Houston as two of the hottest cities in the U.S. for 2014 to 2015. Austin came in second-place, nationally, for future job growth. Many large corporations still call it home, and college grads are still flocking to its marketing. Grads are also moving to Houston in droves, which is still rated the biggest job-creating city in the U.S.
A dip in oil prices doesn’t forecast the end of the oil boom in Texas, but even if it did, there are other burgeoning markets here in the Lone Star state, and commercial land is still a very valuable investment.
What Declining Oil Prices Mean for Investors and Businesses
When prices take a dip some people see a recession, but other people see a sale.
It’s true that prices have not been shooting upward as quickly as they were a few years ago. While this may temporarily be discouraging for some property owners, it does have two big advantages:
- It means there will be less of a market correction later, and
- Now is the perfect time to buy property for a great price.
It’s also important to note that other states and their real estate markets have felt the effects of the recent recession much, much worse than we have. In fact, Texas was barely affected. Our industries have endured and thrived despite the recent instability in national and global economies.
What The Future Holds
There’s no crystal ball here, and anyone who follows the market can assure you that past performance is not an indicator of future success. However, the track record for the Texas real estate market is consistent. Industry is strong, and morale is high. Texas has been a steady bright spot during a decade of economic uncertainty, and it shows no signs of failing now.
If you’re interested in getting in on a worthy Texas investment, you can browse our commercial real estate properties online. When you’re ready to see something in-person, contact us online or call us at 800-569-3500.