Pursuits
Home Values in U.S. Oil States to Fall With Drop in Crude Prices
- New Mexico, Oklahoma, Alaska, Wyoming may see value declines
- Decreases of 6% to 20% predicted under one Fannie Mae model
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Oil-producing states defied the U.S. housing crash by posting gains in home values as the rest of the nation suffered. Now, with crude trading at half what it was a year ago, it may be their turn for lower property prices.
New Mexico, Oklahoma, Alaska, Wyoming and North Dakota may see home-price declines of 6 percent to 20 percent over the next five years, according to one of the models in a Fannie Mae report issued Friday. Under the worst-case scenario offered by Eric Brescia, a Fannie Mae economist, home values in Texas will be flat in the next five years if lower energy prices cut demand for shale oil.