As Texans adjust to life under orders to stay at home during the coronavirus pandemic — and scramble to cover expenses with incomes that were drastically cut or abruptly shut off — housing and real estate experts say it’s hard to predict what the parallel public health and economic crises will do to home values and sales. A lot depends on how long the twin troubles last. “We definitely will have a slowdown, but the question is how much and how long,” said Scott Norman, executive director of the Texas Association of Builders. That’s a sudden about-face for what had been, until now, one of the most dynamic real estate markets in the country. The state has had five consecutive years breaking records in terms of numbers of houses sold and median prices, according to Texas Realtors. And Texas’ home building industry has been solid, too; no other state had more building permits in 2019, according to census data. Luis Torres, an economist with the Texas A&M Real Estate Center, said the housing sector can be a barometer for the economy as a whole because it affects jobs of laborers, builders, Realtors and a litany of other professions. “And it has a multiplier effect into the rest of the economy, from moving companies to furniture stores,” Torres said. Already, experts are seeing slowdowns in home showings — which are now largely done virtually — and expect that permits for new construction might also drop. For regions whose residents rely largely on the energy industry for work, like Houston or the Permian Basin, or on cross-border trade, like the Rio Grande Valley, home values and sales may dip more than in other Texas regions. Click to read more at www.news-journal.com.
What a 4th Generation Oil & Gas Entrepreneur has learned about the
Industry and the Cycles of Investing in Oil and Gas for our Future
Jay R. Young
Founder & CEO, King Operating Corporation
In the new shale-dominated world, we all know that the industry is changing. With threats ranging from geopolitical issues to the rise in electric vehicles and alternative fuel sources, we need repeat investors now more than ever if we’re going to stay in business. If we turn people off by doing deals in which they lose money over and over, why would they ever want to invest again? Given all of this, I knew I had to start doing something different about the way we did business at King Operating Corporation. The way the vast majority of oil and gas investment deals have traditionally been structured has left limited running room and little diversification. If something goes wrong—and in a complex system like drilling for oil, things can certainly go wrong—there are few ways to fix it without pouring more money into a literal hole in the ground. In these types of cases, it becomes nearly impossible for the investors to recoup their investment. Click to read more at www.rednews.com.
We’re seeing digital and tech transformation in all areas of our lives. In general, this is a welcome transformation. Not only does technology save us significant time it also ensures much greater accuracy, which is imperative for improved decision making. Not surprisingly slow manual processes can be a breeding ground for human error. The tech revolution is making its presence known in the real estate world, too (albeit, with some hesitation). We’re seeing more and more brokerage firms adopting a technology-first mindset. That said, the idea of what it means to be a tech company is still loosely-defined when related to real estate. Brokerages that are self-proclaiming as tech companies rather than real estate companies allow for a wide variety of interpretations. As we watch this transition, it’s helpful to understand what this “name game” means, and how it might impact brokers, brokerages, and customers at scale. Click to read more at www.realmassive.com.