by Wolf Richter
Real estate pros are preparing for a downturn.
Texas is, let’s say, in transition – from a phenomenally booming economy to something other than a booming economy. The oil bust is hitting in some places, and contagion is spreading.
In Houston, commercial real estate, particularly the office market, is melting down. Some smaller oil towns have been hit hard. Consumers, hit by “negative ripple effects,” as the Dallas Fed put it so elegantly, are having second thoughts about spending, for the first time since the Financial Crisis.