Allen Brothers Houston Real Estate

Will Libya Crisis Affect Real Estate in Houston?

March 14th, 2011 12:20 PM by AllenBrothers Realtors

This is a complicated question, with several aspects. Any readers who can help me should definitely voice their opinions, because it goes like this: The Libyan crisis poses a potential threat to depress the value of properties here in the city of Houston. In the long term it could permanently increase petroleum prices worldwide. This would be especially likely in a scenario where the Libyan Chieftan is overthrown by UN forces, because he would surely burn all oilfields as a parting gesture to the world. The skyrocketing price of gasoline alone would not be the only factor that would effect Houston real estate. There is also the fact that Houston's economy is enormously affected by the petroleum industry. Would a higher price for oil worldwide have any consequences for local refineries? Would it have any consequences at all? This question points to the most obvious immediate concern: jobs. Would the energy sector experience a blow in terms of layoffs? Salary cuts? Nothing whatsoever? In the real estate market home prices are always affected by local economy, and a major blow to the energy corridor in Houston would spell a major blow to the Houston economy, which would lead to a blow to home prices in general. What do you think?
Posted in:General
Posted by AllenBrothers Realtors on March 14th, 2011 12:20 PM

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