While oil prices have dropped in the last week, oil companies seem to be hiring and taking on new projects because we have seen more foreign nationals relocate to Houston in the last month than we have seen in two years.
Energy Realty opened for business during the peak of oil prices, and during that time, 30% of our business was with foreign nationals. After oil prices plummeted in 2014, we felt the impact with a downturn in relocation clients and home prices followed that downturn.
The real estate market typically follows oil prices by 6-12 months, and we are starting to see that activity point the market in the right direction. Although 3 years ago $50 a barrel was not a good sign for Houston, today oil companies are producing oil more efficiently and are still profitable in this range.
It’s about time that this real estate market starts to normalize because it has been as unpredictable as oil prices for the last three years. Our relocation agents are receiving multiple clients arriving with oil companies and oil service companies every week, and the word is that most companies are hiring and relocating by the 100’s.
Although I reported in May that clients relocating to Houston would potentially purchase homes rather than lease, we have seen a shift to high end leases again, with budgets in the range of $3000-$8000 per month to lease executive homes with pools. If your home flooded and has been remodeled well, a lease may be the best option until home prices rebound from the last three years, but be prepared to make sure your home is modern in order to attract these executive renters.
Read the article below about how remodeled flood homes have started to sell below pre-flood values and suppressed the values of non-flood homes. This will hold true with rental properties that have not been modernized.
Our international team of Realtors specializes in relocation and will be ready to turn this market around as more foreign nationals arrive to Houston.