The slump within the oil economy has greatly affected all other sectors. Today's oil prices are falling abruptly to levels that was last witnessed in 2003. Even BP Oil has announced that there will be more than 4,000 employees to be laid off in the next two years due to the current slump in the oil industry.
Other sectors are squeezed because of the oil price slide. Even airlines, restaurants, steel makers, and now the real estate sector are facing the consequences.
Amidst the delightful sights of low gas prices, housing markets in areas that once flourished due to US shale oil boom are now slumping. Reportedly, homes sales have been sharply plummeting in North Dakota and Houston.
The oil drilling boom has brought in thousands of workers closer to the oil fields along areas in North Dakota and Houston. Real estate flourished because worker needed homes close to their work area. But it was in late 2014 that oil prices began plummeting and oil companies began to halt operations in the oil fields which caused a lot of workers to lose their jobs and move somewhere else.
It is expected that housing will continue to slow down until oil prices begin to recover. But oil companies and even Wall Street traders are not expecting for such a rebound to happen soon.
In Houston, house sales began to slow down in October while median home prices started declining as well after a 41-month streak of price increase.
Houston real estate agencies believe that the decline of the oil industry resulted to less competitions for homes. There are lesser chances of fetching offers from multiple bidders.
But Houston's economy is no longer as dependent on oil as it was in the 1980s where it took a direct hit from an oil slump which led to a savings and loan crisis.
