There has been a ton of speculation that continues out there about oil and Houston……..problem is none of it jives with what is happening on the ground…
The problem is that not a single piece I have read so far (like this one from CNN Money today) mentions the other half of any economic equation…supply. They all focus on “demand falling†and do not even consider supply. With supply at 2.5mos (an all time low and 1/2 the national average) demand is going to have to completely collapse worse than the 2008-’11 recession levels before prices take any type of considerable hit.  To give you some perspective, Houston went into the 2008 recession with a monthly supply of homes of 6 to 7 months. What did home prices there do during the “greatest recession since the great depression†from December 2007 to December 2011 when oil (USO) collapsed from $149 to $49? They rose….
From the Houston Business Journal:
