Home sellers are slashing prices and offering incentives to keep buyers from walking away from contracts as an 18-month oil slump buffets Houston’s once-booming housing market.
So much for the diversified economic base Houston boasted of that was supposed to ward off a convulsive turnaround in what had been the nation's best growth market for the early recovery stretch of years.
Wall Street Journal staffers Laura Kusisto and Kris Hudson team up on this piece. They write, quoting data from BUILDER PULSE sibling Metrostudy:
Now, unsold homes sit near the Exxon Mobil campus, with the supply of so-called speculative houses there exceeding the metropolitan area’s average since the second quarter of 2014, according to housing market researcher Metrostudy, part of Hanley Wood LLC.
The higher end of Houston’s market has been hit especially hard. The number of unsold lots for homes priced at $400,000 and up has ballooned, said Lawrence Dean, a Metrostudy senior adviser in Houston, who estimated it will take three to four years to exhaust the supply.
Note one of the comments, which suggests that there are signs the economic slippage is not being contained to oil production.