A rumor that Iran attacked a U.S. Navy warship had oil prices rising. Eventually the market settled down, but not before the price of a barrel of oil passed $64. Market analysts see the possibility of $80 to $90 a barrel if the Iran nuclear program keeps going. To a certain extent this is good news for energy producing states, but not so good for energy consuming states. In the short run, this will boost the Oklahoma economy to new heights. In the long run this is not so good. $65 a barrel is a good level, but a more permanent floor at the higher prices increases the risk of inflation which affect interest rates. For those who have already bought property in Oklahoma, this should mean higher rents. In the two years we have been closing investor properties, rents have become stable, but not increasing. Partially this is due to the fact that Oklahoma City was extremely attractive to investors not associated with ICG. That trend has slowed down as those investors realize that this is not a flipping market, and the rents that we project are realistic, not "pie in the sky". Expect  2008 to be a year of rental appreciation, as well as real home appreciation. Please watch oil prices very carefully. In the last 50 years interest rates track oil prices very closely.

Express Jet Airlines has announced nonstop flights between Oklahoma City and the following destinations: Austin, Albuquerque, San Antonio, Sacramento, San Diego, and LA-Ontario. These flights will start on April 16th. This is very important to the Oklahoma City economy. One of the reasons these flights are important is the ability to attract business. Before the 100 million dollar expansion of our airport we had no nonstop long distance flights. Executives want this for relocating their companies. Since last year we have had nonstop to the east coast started, and United initiated nonstop to Los Angeles, with San Francisco in the works. Our city continues to move forward in it's economic expansion. 

     I forgot to add that a highlight was the stop at Braum's. This is a local farm company that is headquartered in Mustang, Ok. that has stores where the ice cream and shakes come from their local farm cows. I think this will be a tradition in the future!

       Everybody should experience a 38 hour work weekend! The Oklahoma ICG bus tour arrived from touring Tulsa during Friday to come to Oklahoma City Friday night for our opening dinner together. On Saturday 9 investors and Gracie Santos from ICG experience a tour of our city that went 225 miles that day. Not only did we tour properties of single family, townhome, and duplex projects, we also looked at how the MAPS projects have transformed downtown, the Oklahoma City school systems, we also saw the Dell campus on it's way to 7000 employees, Tinker Air Force Base that is adding 16,000 people in ten years, the State capitol complex, and medical research facilities. On Sunday we went to Norman, the home of The University of Oklahoma, and the U.S Severe Storms Research Facility and other employers, to view The East Village complex of retail stores, condos, lofts, and denims being built together in a synergistic multi-use format. It was great that this was not a big tour that would get impersonal. I got to know the investors on a personal basis to understand their needs, as well as getting their fresh eye on our city. All in all, it was fun and productive. After they went to the airport at 2:30, I picked up another ICG investor in town for the Pre-Paid Legal convention to show him how his investments were going, then got to work two clients at a new home subdivision I represent. Thank you ICG and let's do it again!

        Recent revaltions about lending practices has put America and the stock market on edge. For years, easy money has been given out to less than credit worthy home buyers. Markets that have seen prices skyrocket in the last five years have increasing numbers of foreclosures based on loans that were not fixed rates. The end result is that many markets will see a flat or falling value until these repos can be absorbed. However, for some markets it can be good news to investors.

        Affordable markets like Oklahoma and Texas have not seen much of a change. Oklahoma has been on the national average for foreclosed properties, so all is normal. In fact, Oklahoma City set records in January and February for units sold and volume. If you have good credit in Oklahoma, affordable housing is in reach with fixed rates. The even better news for investors is that the sub-prime lending practices are being tightened. Fewer of the lower end buyers will be able to obtain financing. There is a name for these people, RENTERS! As of February, my investor homes have been at a 2.5% vacancy rate. This should improve, and we should see a lower downtime for new purchases. The negative to the sub-prime crisis is that rates could start to go up this year, probably in the last half.  This is a good time for investors to buy.