Question about the housing/mortgage collapse

[Jerk]

I was thinking about the Faninama's thread about how bleak things are for the real estate business and got to thinking that I had better go ahead and make some back-up plans because I am in construction now.

However, we are having another oil boom in the OK/TX area and I am wondering if this will insulate us from a national slump?

Also, it appears that the economy may actually take a giant sh** soon and I am wondering the same thing: Will the growth and profitability of the local oil and gas businesses keep us from feeling the effects of a national recession?

[Sooner24]

The oil business is the only thing propping up housing in OK and TX right now. I really don't foresee the oil and gas business petering out anytime soon. By the time the housing market recovers in the rest of the country I think we will have missed the big downturn.

[Soonerus]

The real estate market in Oklahoma is strong. We are not affected by the extreme price swings seen in other markets. Thus, mortgages are still easily obtained in Oklahoma. We did not have a bunch of this "sub-prime" lending that occurred in other parts of the country that was totally dependent on massively escalating real estate prices. We continue to increase our real estate values but not excessively and we are one of the stablest real estate markets in the USA right now....Thus, it's time to invest in Oklahoma....BOOMER...

[OklahomaTuba]

The oil business is the only thing propping up housing in OK and TX right now.

Sorry, but the oil business is not the only thing propping up housing here in OK. Maybe in Cushing or someplace that is all oil, but not in oil-town USA it isn't.

Its a really great time to be in manufacturing, aerospace, defense, energy, technology development, health care, construc]tion etc.

The problem is going to be in those bubble markets where people were fliping houses for 200% margins in 3 weeks on no-interest loans.

[Soonerus]

The OKC area is as booming as I have ever seen it, more than the oil boom in the early 80's...

[Okla-homey]

The OKC area is as booming as I have ever seen it, more than the oil boom in the early 80's...

My GF always said the "canary in the [economic] coal mine" was pawn shop inventories. As the last bust got rolling in the late 70's/early 80's, pawn shops started to load-up with Rolex's and jewelry. Perhaps we need a pawn shop inventory observer to make regular reports.;)

[Rogue]

Jerk,

They have guns at some pawn shops. I'll nominate you to be our observer if ya want.

[Jerk]

Jerk,

They have guns at some pawn shops. I'll nominate you to be our observer if ya want.
GUNZ!!?!!:eek:

You're alright, Rogue. Any liberal who is also a gun nut is A OK in my book.

Spek to you my brotha from anotha motha

[OUinFLA]

The problem is going to be in those bubble markets where people were fliping houses for 200% margins in 3 weeks on no-interest loans.


If you've been lusting for a condo near South Beach, this year will be the time. Condos that were flipping in the 350K to 400K range early last year can be picked up for 200K to 250K today, and expected to drop a bit more in the next 6 months.

On the other hand for those of you with lots of money, the market for 1 Mil + homes is actually increasing in the more desirable Fla areas. Too bad for you.

Listing vs closing times have increased from 35 days to 360 days over the last year and 1/2.

If the environmentalists would take a vacation, we would have a rather sizable oil industry off the coast of Florida. (One can only hope....especially those of us who fish for fun. Offshore rigs are fish magnets)

[Sooner24]

Sorry, but the oil business is not the only thing propping up housing here in OK. Maybe in Cushing or someplace that is all oil, but not in oil-town USA it isn't.

Its a really great time to be in manufacturing, aerospace, defense, energy, technology development, health care, construc]tion etc.

The problem is going to be in those bubble markets where people were fliping houses for 200% margins in 3 weeks on no-interest loans.


Having seen what happened in the 80's, I still say, if the oil business went south it would have such a huge ripple effect most everyone would feel it. I remember back when out in the Clinton/Weatherford/Elk City/Sayre area there were so people working in the oil business they had people living in parks in tents or in travel trailers. There was not a house to be found and if you did find one it was priced for twice what it was worth. When the whole thing came crashing down there were hundreds upon hundreds or repossessed cars and houses just abandoned. The last time I was in Sayre, which has been around eight years ago, main street looked like a ghost town.

Granted we are more diversified now but oil is still what drives this state like it or not. Let Chesapeake or Devon have massive layoffs and see what would happen. There are not enough jobs in other sectors to absorb the number of workers that would be looking for jobs and not able to make house payments.