A.D. Cantelmo Property Management
Our Business is Property Management in
Orange County California
To some, low oil price is bad news
All of us love to see those gas prices going down, unfortunately
for us here in California we still pay much more than most of the Country for a
number of reasons, most of which is hidden from the public. That being said, to
some, low gas prices are not good news.
Much of the economic growth in the last few years has been
from the energy business, the discovery of oil fracking has created thousands of
high paying jobs, but as oil prices continue to drop and as I am writing this,
the price is $30.10 a far cry from the $110.00 just a year or so ago. This low
price will force many of those energy jobs to go away. It is becoming too
expensive to get the oil out of the ground for many of the new companies that formed
and those thousands of jobs will also go away.
What does that mean to the rest of us, who have nothing to
do with the oil industry? It could put the economy back to where we started a
few years back and as most of us understand, the economy has been growing very
slow and any set back could be devastating to all of us and most of all in the
Real Estate industry. Those of us who understand the ins and outs of the
housing market, we know that the price increases have been due to low inventory
and few choices for the consumer. Supply and demand at its best. The recession has
left a bad taste in the mouth of so many that the thought of selling their
homes and buying a new one is still hard to swallow. The construction industry
has still not caught up with the demand for new homes and with the rental
market exploding, multifamily homes right now are the way to go.
It is going to be interesting to see how low oil prices will
go, some say it will get to the $20 range and if that happens, everything will
be up in the air as far as the economy goes. I am no different than anyone else
and even though I understand the economics of low oil prices, I still like to
see those pump prices go down. The question will be, in the long run, will it
cost us more than the savings at the pump will benefit us.
A.D. Cantelmo Property
Management Specializes in Property Management in Orange County
Ca.