The Price Of Oil v. Your Home’s Value
So how does the fluctuating price of oil affect your homes value?
It seems like there are new headlines every month about where the price of oil is and speculations about where it is headed. There are many factors that can affect your homes value, and the price of oil and the performance of the energy sector is one of those factors.
The real estate market is affected by other sectors in a local, regional, and national economy. If the energy sector is a prevailing force in your local economy you will see a strong correlation between the price of oil and the value of real estate. If your local economy is diverse and has a variety of strong economic sectors, a decrease (or increase) in the energy sector won’t have as significant of an impact on the value of real estate.
Lets say you live in west Texas where oil & natural gas production is a driving force in your economy. A slow down in production and decrease in the price of oil can lead to a significant decrease in the value of real estate and a slow down in the real estate market in west Texas. If we take the same slow down in oil and natural gas production and look at the effects it has on the real estate market in Dallas-Ft-Worth we don’t see as significant of a decrease in the value of real estate because of the diverse economic makeup that is found in DFW. The energy sector is a large part of the DFW economic makeup, but there is also an abundance of construction, technology, financial, healthcare, professional services, and many other sectors of the economy that can help sustain the real estate market if the energy sector takes a hit.
The value of real estate is steadily shifting, and there are many factors that come into play. If you’re curious of the value or your home or real estate give me a call, send me a text, or send me an email. I’d be happy to set up an appointment and get you a detailed market analysis of what your home is worth!
« Previous Post: 3 Advantages To Listing Your Home During The Holidays