OKC Real Estate Market

[sooner88]

It’s becoming common practice to put in contingencies to go x% over your bid also. A family member of mine recently put a full ask offer on a house in Belle Isle for ~$500,000 the day it was listed with a contingency to go 20% over their offer and still lost. Hopefully the rising rates will bring some normalcy back to the market, but realistically we’re just playing catch-up.

[Soonerinfiniti]

The flip side of this is the upper end of NYC real estate, where they use "aspirational" pricing - very high price that lets the market catch up. I understand the reasoning behind it, and suppose I understand the FOMO aspect of it. I am surprise we don't see more For Sale By Owners at this point.

[Richard at Remax]

Seems like any house under around $350,000 in the core area is pending within a few days. Many of these homes need serious work, but I guess people are so desperate in that price range that they don't care that a good renovation just doesn't make economic sense. Also, it amazes me when brokers tell me they have 15 offers the first day listed. Obviously the listing price is too low - are the realtors being lazy and looking like a hero? I guess in a hot market you can do that a few times, but the general price trend is moving up - fast.

Amazing to see new construction in the Classen Ten Penn area going for $500,000. Never thought I would see that area get hot. Driving out NW Expressway there are new homes in the $250,000 range. I guess it all comes down to location, location, location....

Not lazy at all. We look at all sorts of comps and scenarios. We can't guaranteed demand. We can only go off what comps are out there. Now lets say all the comps put my listing at $310,000. I'm going to suggest to my seller to start at $299,999, mainly since a lot of people use search increments of $25,000. So while I start it lower than it should, a TON more eyeballs get to see it, therefore I'll probably get more than the $310 I was going to begin with.

[Pete]

I would think the biggest issue is getting financed due to low appraisals.

Virtually every decent house on the market is setting a new high for $/SF in every neighborhood.

Are buyers having to come up with more cash to close that gap?

[Richard at Remax]

Yes. Usually a $5000-$10,000 minimum gap is the norm right now.

[jompster]

Yes. Usually a $5000-$10,000 minimum gap is the norm right now.

That was our experience, too. We had to come up with $2,500 to cover the gap, and we had the contingency clause to overbid up to a certain ceiling. Both were a first for me.

[Pete]

Despite the interest hikes, home inventory remains very low, at least anywhere near me.

There are exactly zero homes for sale in my almost one square mile neighborhood and those that do come on the market are snapped up very quickly.

For anything decently renovated, my area is approaching $200 per sq. ft. Just six years ago I bought my house for half that.

[PaddyShack]

All of this talk really puts a damper on the future. We are fortunate to be in a good sized home in a a great neighborhood, but it is in Yukon and we are just not feeling like it is home to us anymore. Plus the house is just not the style or layout we desire. We bought our home for right at $100/sq ft and I just cannot stomach paying double or more than that for a sq ft, no matter location or what not. As with everything we buy, houses get lived in and things degrade over time. However house never seem to loose value, I mean buying a house is more paying for stuff around the house, i.e. schools, shopping, roads, services, and amenities than it is the actual good you buy, the physical house. We thought about downsizing altogether and renting for a little bit, just to be more nomadic for a bit, but the rental market is even worse. I say this merely as a call to what are the positives in a market like this?

[Pete]

^

But you're just looking at the buying side of the equation. You'll get an equally high price when you sell, so it's a wash.



People here are just starting to experience what has been common in hot markets for decades. When I moved to California, you can't imagine my sticker shock; houses were generally 4-5 x the price in OKC and with small lots and of poor quality.

When things kept going up and I remained on the sidelines, I finally sucked it up and bought a place I had very mixed feelings about and needed a lot of work.

Fast-forward a decade later and that house had doubled in price and I was able to quickly sell it, buy a home here that is actually better in every way, and put all that money in my pocket and basically retire.

[BoulderSooner]

^

But you're just looking at the buying side of the equation. You'll get an equally high price when you sell, so it's a wash.

the difference is that you likely currently have a very low interest loan ... and you won't be able to get that if you are buying now .

[Ginkasa]

I've been trying to buy a house and it has been a struggle. Had a few offers go out and one was accepted but things just keep not working out for one thing or another. And the interest rate is super gross. And I've got some particular wants that limit my choices even further.

I think I'm going to back off for now. Consider other options. Build up savings even more and see how things shake out in the future.

[chssooner]

the difference is that you likely currently have a very low interest loan ... and you won't be able to get that if you are buying now .

Bingo. I refinanced at 1.975%. No chance in Hades of getting a rate that low, no matter how much I put down on next house.

[Pete]

Rates are still very low, just not the all-time lows we've been experiencing.


Anyway, my point is that despite the rising interest rates, the housing market is still red-hot.

[BoulderSooner]

Rates are still very low, just not the all-time lows we've been experiencing.


Anyway, my point is that despite the rising interest rates, the housing market is still red-hot.

that is for sure ..

[Pete]

Spring and summer are usually very busy times in the housing market.

The true test will be in the fall and winter. Then we'll know if interest rates and other factors will start to slow things down.

[Bill Robertson]

Everything in our area is selling within a couple days of the sign appearing. I was going to say there's one exception because one went up a week ago and doesn't have a sold sign yet. But I just looked it up on Realtor.com and it is sold.

[Richard at Remax]

2 months ago active listing were hovering around 1,900/day. That number has bumped up to ~2,700 today. Def seeing houses stay on market a tad longer due to interest rates, but it's still record low inventory for this time of year.

[Pete]

^

Do those active listing numbers include homes under contract?

Because it seems like 98% of everything listed right now is pending sale.

[Richard at Remax]

^

Do those active listing numbers include homes under contract?

Because it seems like 98% of everything listed right now is pending sale.

No. Current Pending homes is at 4,731

[Richard at Remax]

I'll leave this here too. A tad self serving but true https://www.oklahoman.com/restricted...F7414097001%2F

[okccowan]

Between 1979 and 1989 average mortgage rates were over 10%. So, things could get much worse

[soonerguru]

Between 1979 and 1989 average mortgage rates were over 10%. So, things could get much worse

Not self serving at all. People who don't use realtors are idiots, unless they have extensive background in the industry. All of the inventory on our cul-de-sac sold very quickly in the last year, including three homes that were previously vacant. Now, there are no vacant homes at all and nothing for sale anywhere in our entire neighborhood.

But, there was one house in which the sellers thought they could "save a little money" by listing the house themselves. While everything else sold within a week or less (one sold after being listed for eight hours), their home languished in For Sale By Owner status for several months. Finally, they got wise and found a realtor, who sold the property within a week.

Ultimately, I suspect they had to seriously reduce the asking price to sell the home, which I believe was bought by a real estate flipper.

[Bill Robertson]

Between 1979 and 1989 average mortgage rates were over 10%. So, things could get much worse

Yeah. Wife #1 and I bought a new house in 84 or 85. If I remember right the interest was around 12%.

[stlokc]

+1 on using a realtor.

My personal story: When I got married, I sold my small "bachelor" house. All the houses on the street were small and very similar 2BR, 1 Bath. Three of them had sold the prior year for between $180K-200K. Now, I was "sure" that my house was nicer than those. At my fiancé's urging, I got a realtor and promptly told her I wanted to list for about $205-210K. My reasoning, I thought was valid: "Well, if it doesn't sell for a while I can always lower the price and I'll still come out ahead."

My realtor was like: "Ummm, no, the market is $190-195K on this street. People know that. If you put it on the market for $210K it will sit there. And then it will eventually have 30 days on the market, people will wonder what is wrong with it, you'll be forced to go down to $190-195K and then it will maybe sell. Gone are the days where you can expect haggling and give and take. You will waste that time and effort. Plus, if we happen to price it a little too low, there's the chance of a bidding war."

Long story short, took her advice, listed it for $194K, sold it in two days for $198K. Which is what it was worth, in the end.

Point being, always trust a professional.

[kukblue1]

Homes in my Neighborhood 6 years ago sold for 140,000-110,000 Now they are sailing for $220,000-160,000