In the midst of what some are calling a global crisis—due to weaknesses in the energy sector and stock market combined with the effects of an overly strong U.S. dollar—home prices continue to move upward. Despite this however the housing sector is just not large enough to carry the weight of the world.
The S&P Case-Shiller Home Price Index released Tuesday found that home prices rose for the 43rd consecutive month in November 2015. According to the HPI report, home prices rose 5 point 3 percent year-over-year in November, slightly up from the 5 point 1 percent increase recorded in October 2015.
As oil prices continue to decline in the U.S., many in the mortgage industry are expressing concern about how America’s new crisis will affect the housing sector. ProTeck Valuation Services released its Home Value Forecast Tuesday, which shows that at the end of December 2014, there were 1 thousand 882 active oil rigs in the U.S. Just a year later, that number has fallen to 714. In the state of Texas alone, the rig count dropped by more than 62 percent in 2015. This decline is affecting oil sector employment, home values, and home sales.