The continued drop of oil prices is putting many U.S. states at risk of a housing market collapse, especially these eight.
According to Housing Wire, a report from the Housing & Mortgage Market Review revealed that across the board, there is only a 6 percent chance on average that the prices of houses will steeply decline. However, there are states in the country that are more prone to seeing their homes market bog down. A report by Arch Mi pointed out eight states under the "Energy Patch" that has the highest possibility of looking at an extreme price drop in the next couple of years. These states' income relies mainly on the production of oil, gas and coal.
North Dakota ranks number one among the states that is likely to experience a housing price crash over a period of two years. Arch Mi data showed that there is a 46 percent likelihood that it will happen and realtors in the area as well as people who are looking to sell their properties are advised to buckle down and be ready for the worst before it gets better. The main reason for this happening is the slowdown of the production of oil and gas due to the decline in prices as of late. With demand going down, many workers have left the sites and left a trail of unoccupied houses and apartments.
The rest of the eight states that are at risk are Wyoming, Alaska, West Virginia, New Mexico, Oklahoma, Louisiana and Texas.
In a report by The Wall Street Journal, the price of petrol products is now down to almost $30 per barrel and it is hurting the oil industry. On Tuesday, the prices dropped down again with the global benchmark Brent down by 18 percent to start the year. In the U.S., prices stayed in the $30 range but Saudi and Russian oils have already plunged below that mark.