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Old 11-06-2008, 10:01 AM
 
28 posts, read 122,381 times
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It looks like the houston (Texas in general) economy is now slowing down due to fall in gas prices. This fact is also supported by the steep reduction in housing starts in houston area. (Ike, faltering economy hammer Houston home builders | Business | Chron.com - Houston Chronicle)


Does anybody see strong correction in housing prices in areas like Cinco Ranch which is highly dependent on energy industry?

Please share your thoughts.
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Old 11-06-2008, 12:45 PM
 
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My wife works for an oil and gas firm. Oil, despite being half of what it was, is still at historical highs and they are drilling like never before.

The housing market has already been slow, but in my neighborhood at least, they've seen it pick up a little bit in the last few weeks.

Low housing starts is not necessarily a bad thing, it will allow supply to catch back up to demand much more quickly.
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Old 11-06-2008, 12:52 PM
 
Location: Wicker Park, Chicago
4,789 posts, read 14,750,317 times
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I've been looking for a job for 12 weeks here. Before there used to be lots of job listings in Craigslist. After gas prices dropped it slowed down so much! Just went to the Reliant Prof Job Fair Oct 21 and nobody has called me back!

My brother says there's a hiring freeze at Dow Chemical now.

I'm thinking about leaving Houston too! Most jobs here are for the highly experienced NASA and OIL & GAS people. I don't have enough experience [6 months Oil, 10 months NASA].
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Old 11-06-2008, 01:23 PM
 
Location: San Antonio-Westover Hills
6,884 posts, read 20,416,066 times
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Things haven't slowed much here in Houston, but that has a lot to do with the fact that we weren't sky-high to begin with. Prices in Cinco Ranch are holding totally steady as of today. Sorry!
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Old 11-06-2008, 01:30 PM
 
Location: Houston, TX (Bellaire)
4,900 posts, read 13,742,914 times
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My neighborhood (Kingwood) went from 10 houses for sale 6 months ago to 72 now. Things are sitting forever and every month people are dropping prices.
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Old 11-06-2008, 01:50 PM
 
166 posts, read 899,731 times
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Not good for katy area and probably sign of things to come for Houston:

KBR delays project in Katy indefinitely | Katy News | Chron.com - Houston Chronicle
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Old 11-06-2008, 03:21 PM
 
Location: San Antonio-Westover Hills
6,884 posts, read 20,416,066 times
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Quote:
Originally Posted by chris_ut View Post
My neighborhood (Kingwood) went from 10 houses for sale 6 months ago to 72 now. Things are sitting forever and every month people are dropping prices.

I think what people need to keep in mind is that it is November. 6 months ago, it was peak time to sell! Spring and summer are always better. November is very sllllooooow...but having said that, I'm curious to know Chris, to which village are you referring when you say "your neighborhood"? 72 houses for sale in the entire Kingwood development isn't bad at all, but if you're talking about 72 houses in, say, Sand Creek or Fosters Mill Village, then that might be a little more concerning. Obviously villages like Bear Branch and Woodland Hills are pretty big so they'll have more than most other villages.

I haven't noticed the prices per square foot coming down too much in Kingwood (I'm talking about the original villages, btw), but naturally, if there's more competition during a slower time of year, prices will reflect that.
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Old 11-06-2008, 03:29 PM
 
Location: Wicker Park, Chicago
4,789 posts, read 14,750,317 times
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Here part of an email back to me from my brother about the job market in Houston -

The cheap gas, err cheaper crude oil is of course the problem. I knew that. I know that when crude oil drops below $80/bbl the most expensive oil projects stop dead. The next price point was $75, then $60 when other major projects stop. And when they stop, everything literally stops – purchase orders get cancelled with penalties, contractors get laid off, and the construction site is mothballed and shutdown. But engineering only work might continue until all the engineering design gets done. And now that the engineering has more time, it will get done more correctly and get better designed. The LAST price point when everything in oil and gas stops is when crude drops below $40-$50/bbl. If that happens, all new refinery projects will stop.

And NASA work has slowed down too. I guess my time in Houston is up unless Hydril hires me at $70K / yr.
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Old 11-06-2008, 03:54 PM
 
Location: Charleston Sc and Western NC
9,273 posts, read 26,507,676 times
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Noticing things are taking a little longer to sell in Uptown and Memorial, but there really isn't much inventory and prices haven't fallen.
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Old 11-06-2008, 04:25 PM
 
Location: Austin, TX
4,760 posts, read 13,832,610 times
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Quote:
Originally Posted by Mom2Feebs View Post
I think what people need to keep in mind is that it is November. 6 months ago, it was peak time to sell! Spring and summer are always better. November is very sllllooooow...
I think you are right. Earlier this week my husband and I took a walk in a neighborhood we like in New Territory and there wasn't one house for sale. I don't think people like to sell their house in November or December because the holiday season is a terrible time to move.
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