re: Any Oil Field people here gotten laid off? What have you done to get a job?

quote:

---

I still think the RE market in LA has been artificially inflated and we will have another bubble pop soon which would drive construction prices further down. We never had as big of a downturn as other areas but oil being down will finally make LA feel it.

---

Outside of O&G, why do you say that LA is in a bubble? Just curious.

It should be interesting to see what happens when interest rates finally start picking up (gradually) in the fall.

quote:

---

Outside of O&G, why do you say that LA is in a bubble? Just curious.

---

Unrealistic and unstable price increases. The same exact thing was happening prior to the last bubble pop. I know it had other factors behind why prices rose so fast but it just feels like the exact same thing again. It's not sustainable IMO. A 3-4% increase to keep up with inflation is realistic and even 7-8% is healthy but the drastic increases in many of the bigger markets in LA screams bubble. Couple that with O&G and it's a disaster waiting to happen IMO.

Like I said, we never had it nearly as bad as other parts of the country due to hurricanes and oil creating demand but now those two things are working against us. It may be more gradual this time but there is a market correction coming.

I could be way off of course but all of the elements are there as they were last time.

Got it, didn't realize S. LA was that inflated. Houston is another market that will be interesting to watch.

quote:

---

didn't realize S. LA was that inflated.

---

There are new subdivisions everywhere in Lafayette. You can drive on backroads and all of a sudden come up on new subdivisions in the middle of rice fields that are all sold out before completion. It's been pretty hectic for a while.

Pretty sure BR area is the same thing and of course we all know how crazy NOLA is right now.

quote:

---

There are new subdivisions everywhere in Lafayette. You can drive on backroads and all of a sudden come up on new subdivisions in the middle of rice fields that are all sold out before completion.

---

Those are probably sugar cane fields, but yeah, South of Laffy, there are new subdivisions going up everwhere. I don't know where all the people are going to come from. I keep waiting for it to implode.