Editor's note: This blog post was excerpted from a story published in August 28 editions of The Wall Street Journal.
By Nick Timiraos
Copyright ©2015 Dow Jones & Company, Inc. All Rights Reserved.
The plunge in oil prices increasingly looks like it is here to stay, and that could be bad news for home values in three states that are most exposed to job losses in the drilling fields.
So far, the energy-price declines don't look like they will lead to home-price declines as severe as those inflicted on Texas during the 1980s oil patch downturn, according to an analysis by Eric Brescia, an economist at Fannie Mae. But his analysis shows that homeowners in North Dakota, Wyoming and Alaska are "at risk of experiencing significant house price declines."
First, a little history. Home values in Texas fell 11% from 1983 to 1988, a period in which... Read the article at the Wall Street Journal website
