Recession not hitting Oklahoma?

[MajorMike]

I have read several articles in the past week or so stating about how Oklahoma, and OKC in particular, would not suffer thru the recession. I believe it was Forbes that named OKC the #1 metro best equppied to survive it, I think they called it 'Recession Proof City.' I also see where home sells are actually up something like 3% in OKC and only down 2% Oklahoma wide (as opposed to the down 8 or 9% nationwide).

Additionally, you can see where Oklahoma gas prices are typically the cheapest in the nation and have been for quite some time. Garfield County (Enid) has had the lowest average gas prices for something like 15 out of the last 17 weeks.

What do ya'll that are actually living here think? Have you felt much and/or do you expect to get hit with problems?

[allie]

both of the owners of my company are wary of the coming year and are taking steps to cut expenses and keep customers in anticipation that those customers will have less operating funds in the coming years and may go shopping cheaper prices. Both men are wealthy, self made and not particularly risk adverse, so i am paying attention to what they say. My husbands company has also had a trim down the overtime, watch expenses meeting in the last couple of weeks. His company is oil field service, mine is petroleum equipment.

I don't think the pain will be quite as acute here as in more inflated areas but things will tighten up, especially for smaller businesses. We don't have as far to fall as some states.

[WyomingOSUAlum]

Excellent topic.

Not trying to make this go too far afield, but I've been wondering about the situation in Oklahoma. We just got word yesterday that the county budget is being cut by 10%, hiring freeze, no new expenditures, etc. because sales tax revenues are expected to be down. We've lost well into six figures worth of equity in our home.

Ouch.

Very interested to see what others have to say, including other out-of-staters, if you don't mind.

[AustinPokeFan]

Well, at work here in Austin, we can't get enough candidates together for our support engineering and software development openings.

[Lewis the Pike]

I know a little about the Oklahoma real estate market, because both my parents work in property management in Tulsa.

Tulsa was not hit by the dramatic surge in real estate booms; Home prices stayed on their steadily modest growth instead of seeing the freakish-surge from the ARM craze.

The people most hurt by the housing bubble were the same ones that benefitted from the housing bubble. Fortunately/unfortunately Oklahoma didn't see the same out of porpotion gains and subsequent losses.

[Vulgar Display of Orange]

We wouldn't know a recession if it hit us.

[bleedorange]

We wouldn't know a recession if it hit us.

You must have been born after 1982.

[AustinPokeFan]

You must have been born after 1982.

When I graduated from OSU with my accounting degree in 1985, the Wonder Bread bakery in Tulsa received 425 resumes for an entry level cost accounting position paying $14,000 per year. It was off to Texas for me.

[bleedorange]

When I graduated from OSU with my accounting degree in 1985, the Wonder Bread bakery in Tulsa received 425 resumes for an entry level cost accounting position paying $14,000 per year. It was off to Texas for me.

'zactly.

There are strip malls that were built in the boom, that were only recently, some 26 years post-bust, being filled here in OKC.

[OSUFan]

Excellent topic.

Not trying to make this go too far afield, but I've been wondering about the situation in Oklahoma. We just got word yesterday that the county budget is being cut by 10%, hiring freeze, no new expenditures, etc. because sales tax revenues are expected to be down. We've lost well into six figures worth of equity in our home.

Ouch.

Very interested to see what others have to say, including other out-of-staters, if you don't mind.

One of my neighbors works for Mercruiser and they are at 50% production. They have had to let go a few and reassign a few but for now they are stable. I think companies like Mercruiser who produce luxury items are going to be affected the worst.

[osuno1]

I think the theory behind Oklahoma being "recession proof" was the immense amount of money that the oil companies were making when crude oil was $150 / barrell. Everybody that wanted to work could find work in the oil field and money was no object. The drilling companies have slowed down over the last couple of weeks with oil coming down. I don't know if this will change the "recession proof" theory, but it will certainly change alot of things in Oklahoma.

One of the things my company sells is cs hulls that drilling companies use for lost cirrculation in wells. These companies that sack these hulls for the oil fields have not been able to get enough hulls over the last 2 years to supply all the new wells. For the first time in 2 years, we have companies wanting to sell back some of the hulls they have contracted.

I think Oklahoma's ability to stay out of the recession is directly related to the cost of crude oil. I know we all love lower gas prices, but there is also a cost related to lower oil prices.

[jakeman]

I think Oklahoma's ability to stay out of the recession is directly related to the cost of crude oil. I know we all love lower gas prices, but there is also a cost related to lower oil prices.

Exactly. With some exceptions, Oklahoma's economy is tied to the oil and gas business.

It isn't $3 a gallon gas I can't afford, it's that $1.79 gas that gets expensive.

[bleedorange]

Exactly. With some exceptions, Oklahoma's economy is tied to the oil and gas business.

It isn't $3 a gallon gas I can't afford, it's that $1.79 gas that gets expensive.

That's what I find so funny about people around these parts bitchin and moanin about gas prices. Yes, they are high, but you and your family can't afford "cheap gas", at least not in OK and TX.

[AustinPokeFan]

'zactly.

There are strip malls that were built in the boom, that were only recently, some 26 years post-bust, being filled here in OKC.


And believe me, I wanted to stay in Oklahoma. Still might want to come back someday, as my wife wants to apply for vet school at OSU as part of her 10 year plan.

[Verb]

When I graduated from OSU with my accounting degree in 1985, the Wonder Bread bakery in Tulsa received 425 resumes for an entry level cost accounting position paying $14,000 per year. It was off to Texas for me.

Be glad you didn't go to work for them. Dave managed one of their bakeries for a few years. They were a mess--changed ownership at least three times, were grossly mismanaged and ultimately went under--brand names were sold to another bakery. The bakery industry refused to change with the times, didn't want to use modern management methods, resisted hiring professional managers in favor of promoting route drivers, etc. Crummy industry.

On the other hand, we had all the free Twinkies you could ever want! Trouble is, after one or two, you didn't want any.

[Verb]

One of my neighbors works for Mercruiser and they are at 50% production. They have had to let go a few and reassign a few but for now they are stable. I think companies like Mercruiser who produce luxury items are going to be affected the worst.

Hallie works at a magazine for yacht owners. (Mercruiser is one of their advertisers, btw.) Believe me, the yacht industry is HURTING in a big way, as are other luxury item industries.

[legelegel]

Excellent topic.

Not trying to make this go too far afield, but I've been wondering about the situation in Oklahoma. We just got word yesterday that the county budget is being cut by 10%, hiring freeze, no new expenditures, etc. because sales tax revenues are expected to be down. We've lost well into six figures worth of equity in our home.

Ouch.

Very interested to see what others have to say, including other out-of-staters, if you don't mind.

Wow!

[Verb]

We've lost well into six figures worth of equity in our home.



Us, too.

[OSUFan]

Us, too.

How can you lose equity or how would you know you have lost equity? Are you borrowing against the equity of the house?

[GoPokes83]

Comps and appraised value

Houses are going up as fast as ever here in the Austin area.

[AustinPokeFan]

Once the lenders started granting home equity lines against market values rather than against equity vs. home price paid, that's all she wrote.

[legelegel]

Once the lenders started granting home equity lines against market values rather than against equity vs. home price paid, that's all she wrote.

Very good. Farmers made the same mistake a few years back.

Bankers like to make money and they will sell it to you if they can.