OKC Real Estate Market

[Crocodile Tears]

Maybe we could just all agree that everyone here worked really hard to save money, bought houses that needed work and weren't fancy, lived frugally, sacrificed fancy dinners, and worked hard to overcome assorted set backs and adversity. That way we can help keep this thread from constantly being hijacked with each poster's personal and anecdotal bootstrap stories.

This thread is about the current OKC Real Estate Market.

[OKCRealtor]

In current news since it's the 1st and we have fresh stats it appears prices may have stabilized (they were down last 2 months)

Average sale price in October went up $5k from $240 to $245k

Median and Average days on market both ticked up slightly to 16 & 37

Rates of course have hit and been hovering around new peak highs for this economic cycle. It seems likely the Fed is done hiking at this point but there are other risks to rates in short term. Hopefully things have peaked and this is the trough as it has been slower overall. Seeing some deals that haven't been around since pre pandemic in terms of negotiating with sellers.

Going to be an interesting 2024 it appears.

Edit: Also inventory and homes on the market continue to grow. One silver lining is we have more homes on the market than in 5 years.

[BoulderSooner]

. It seems likely the Fed is done hiking at this point

that was not the take away from their most recent meeting ..

it was we are not raising again "for now"

they are very likely to raise rates again in the near future

[OKCRealtor]

that was not the take away from their most recent meeting ..

it was we are not raising again "for now"

they are very likely to raise rates again in the near future

They have to continue the tough talk - it's going to be meeting by meeting and data dependent. In a few months these rate hikes & Fed controlling the narrative will all be behind us and the health of the economy will take center stage.

For now bond yields are down sharply and markets are betting the Fed is done and we have seen the peaks. Rates look to be down about 35 basis points already from most recent peaks. We will see- it would be much welcomed.

[Canoe]

They have to continue the tough talk - it's going to be meeting by meeting and data dependent. In a few months these rate hikes & Fed controlling the narrative will all be behind us and the health of the economy will take center stage.

For now bond yields are down sharply and markets are betting the Fed is done and we have seen the peaks. Rates look to be down about 35 basis points already from most recent peaks. We will see- it would be much welcomed.

If you were a person buying property in today's market would you buy down the interest rate?

[OKCRealtor]

If you were a person buying property in today's market would you buy down the interest rate?

I would look into it and compare options for sure if I was financing something. It may or may not make sense though depending on the deal. Lenders are also offering free refi's right now where you can refinance down the road for very little if the rates go down.

[Teo9969]

If you were a person buying property in today's market would you buy down the interest rate?

Not to answer for OKC Realtor, but I certainly wouldn't buy it down and try to get the bank to lower the points as low as possible to write the loan. I haven't looked at loans in the last 3 years but it generally takes over 5 years to get the money back from points. Just wait for a decent dip in rates and refinance. We'll probably see high 5s for excellent credit at some point before you'd have made back your money from the points.

[OKCRealtor]

Bond Yields taking another steep drop today with soft labor report. We should see some significant improvement in mortgage rates over the next week when the secondary markets catch up. This could be a turning point in the market and is very welcomed news.

[BoulderSooner]

Bond Yields taking another steep drop today with soft labor report. We should see some significant improvement in mortgage rates over the next week when the secondary markets catch up. This could be a turning point in the market and is very welcomed news.

i very much hope you are correct

[OKCRealtor]

i very much hope you are correct

We need the good news to continue for sure. Ironically bad news for the economy is good news for rates & market.

If rates have indeed peaked, which is a big if still with all the short term risk & volatility still out there, then we have likely already seen real estate prices as low as we will ever see them again. I feel like we are likely to see prices 10-15% higher over next 1-2 years as we return to more of a normal market since there is still a supply/demand issue.

[April in the Plaza]

Is this NAR lawsuit going to affect home pricing at some point?

Seems like it could make the transaction more expensive for the buyer, and that will translate to slightly lower sale prices?

I can also see more buyers representing themselves, especially folks who are on their 3rd or 4th acquisition.

[OKCRealtor]

Is this NAR lawsuit going to affect home pricing at some point?

Seems like it could make the transaction more expensive for the buyer, and that will translate to slightly lower sale prices?

I can also see more buyers representing themselves, especially folks who are on their 3rd or 4th acquisition.

I think it's too early to say. Have been following it for about a year. It is likely going to get appealed and tied up in litigation for at least awhile.

It seems poised to negatively impact buyers- especially first timers, out of staters, minorities & lower price points where people really need help. Buyers may elect to represent themselves (some already do) and will be dealing direct with an agent hired & paid for by seller to protect their interests. Some buyers already try and deal direct with listing agent thinking they save themselves commission and get a better deal only to end up getting a less favorable deal. I only see this costing buyers in the long run & helping sellers putting a further gap between those who already own & those trying to get into the market.

[onthestrip]

I think it's too early to say. Have been following it for about a year. It is likely going to get appealed and tied up in litigation for at least awhile.

It seems poised to negatively impact buyers- especially first timers, out of staters, minorities & lower price points where people really need help. Buyers may elect to represent themselves (some already do) and will be dealing direct with an agent hired & paid for by seller to protect their interests. Some buyers already try and deal direct with listing agent thinking they save themselves commission and get a better deal only to end up getting a less favorable deal. I only see this costing buyers in the long run & helping sellers putting a further gap between those who already own & those trying to get into the market.

How do these buyers end up with a worse deal?

I just dont see how ending the monopoly on 6% commissions will be bad for sellers or buyers. Pretty much nowhere else do you see commissions this high on home sales. The shopping part of finding a home can easily be done without a realtor these days and quite frankly doesnt automatically deserve a 3% commission. Eventually home prices will reflect sellers not having to pay 6% once the NAR/MLS monopoly is over.

[BoulderSooner]

How do these buyers end up with a worse deal?

I just dont see how ending the monopoly on 6% commissions will be bad for sellers or buyers. Pretty much nowhere else do you see commissions this high on home sales. The shopping part of finding a home can easily be done without a realtor these days and quite frankly doesnt automatically deserve a 3% commission. Eventually home prices will reflect sellers not having to pay 6% once the NAR/MLS monopoly is over.

look at the user name

[OKCRealtor]

How do these buyers end up with a worse deal?

I just dont see how ending the monopoly on 6% commissions will be bad for sellers or buyers. Pretty much nowhere else do you see commissions this high on home sales. The shopping part of finding a home can easily be done without a realtor these days and quite frankly doesnt automatically deserve a 3% commission. Eventually home prices will reflect sellers not having to pay 6% once the NAR/MLS monopoly is over.

I could write a very lengthy response with specific examples but I think it probably mostly comes down to unconscious incompetence. Are you familiar with the term/concept? Essentially you just don't know what you don't know and real estate transactions are rarely straight forward. Most people only buy/sell property a handful of times in their life- how do you know you're making the best decisions without someone experienced to guide?

I could tell some horror stories with specific examples but they really just come back to ignorance at the root of them- that is to say they thought they knew what they were doing but didn't and have seen some HUGE mistakes be made.

[BoulderSooner]

I could write a very lengthy response with specific examples but I think it probably mostly comes down to unconscious incompetence. Are you familiar with the term/concept? Essentially you just don't know what you don't know and real estate transactions are rarely straight forward. Most people only buy/sell property a handful of times in their life- how do you know you're making the best decisions without someone experienced to guide?

I could tell some horror stories with specific examples but they really just come back to ignorance at the root of them- that is to say they thought they knew what they were doing but didn't and have seen some HUGE mistakes be made.

this won't stop or limit buyers from getting agents ..

[Richard at Remax]

How do these buyers end up with a worse deal?

I just dont see how ending the monopoly on 6% commissions will be bad for sellers or buyers. Pretty much nowhere else do you see commissions this high on home sales. The shopping part of finding a home can easily be done without a realtor these days and quite frankly doesnt automatically deserve a 3% commission. Eventually home prices will reflect sellers not having to pay 6% once the NAR/MLS monopoly is over.

All commissions are negotiable. Contrary to what you hear, there is no locked rate. The older agents lean more into that old mentality, but every deal I have done is different with a different commission structure. Me personally, that old commission structure is a thing of the past.

[Richard at Remax]

How do these buyers end up with a worse deal?

I just dont see how ending the monopoly on 6% commissions will be bad for sellers or buyers. Pretty much nowhere else do you see commissions this high on home sales. The shopping part of finding a home can easily be done without a realtor these days and quite frankly doesnt automatically deserve a 3% commission. Eventually home prices will reflect sellers not having to pay 6% once the NAR/MLS monopoly is over.

You aren't wrong on this part. Tons of information out there. That being said, the easy part from a buyers perspective is finding a house. Where we shine is everything after that. Driving to endless homes all across the city, getting buyer pre approved, negotiating the contract, inspections, inspection repair negotiations, appraisals, underwriting, final approval, final walkthrough, having to buy a bird bath cause the seller wrongly took it, then close. All while dealing with both sides of clients who are highly stressed. There are so many hoops and obstacles that come into the process that people without representation get taken advantage of because they just don't know, want to know, or want to understand the contracts and laws. It's quite surprising that as many deals close as they do.

[Richard at Remax]

How do these buyers end up with a worse deal?

I just dont see how ending the monopoly on 6% commissions will be bad for sellers or buyers. Pretty much nowhere else do you see commissions this high on home sales. The shopping part of finding a home can easily be done without a realtor these days and quite frankly doesnt automatically deserve a 3% commission. Eventually home prices will reflect sellers not having to pay 6% once the NAR/MLS monopoly is over.

Selling (buyer) agents get paid from what the listing agent dictates to us in the MLS. As a listing agent in Oklahoma, we are required by law to disclose all costs on a net to seller sheet. It shows what I will get paid in the transaction and what I am offering to a selling agent. Then that seller has to sign it.

Me offering a commission amount on the MLS is basically me putting out an open contract for any agent that is part of the MLS. I am paying them to bring me a qualified buyer and work with me on the transaction. Depending on house, situation, price of home, seller not wanting to pay, ect, that amount is different across the board.

[KTB]

I don't think anyone thinks we don't need real estate agents, they definitely are beneficial to a transaction that most only have a few times in a lifetime. Most people do think they are grossly overpaid with the current commission structure. The barrier to entry is far too low and the education level of most is minimal. The days of the MLS monopoly are over and the industry will have to adapt.

I don't think there is any other profession with as many part time agents as real estate. I've purchased 3 homes and used an agent one time. He was a big name agent that had the listing and all of the paperwork he ever produced was a mess. It was full of typos and incorrect calculations. Every other soccer mom is showing houses now but I've noticed the housing market is starting to thin them out though. The house down the street is listed for $900k + and I see the agents showing it. The realtor stereotypes are definitely present.

[onthestrip]

You aren't wrong on this part. Tons of information out there. That being said, the easy part from a buyers perspective is finding a house. Where we shine is everything after that. Driving to endless homes all across the city, getting buyer pre approved, negotiating the contract, inspections, inspection repair negotiations, appraisals, underwriting, final approval, final walkthrough, having to buy a bird bath cause the seller wrongly took it, then close. All while dealing with both sides of clients who are highly stressed. There are so many hoops and obstacles that come into the process that people without representation get taken advantage of because they just don't know, want to know, or want to understand the contracts and laws. It's quite surprising that as many deals close as they do.

Sure, but is it really worth $12,000 (3% commission on a $400,000 home, which is apparently around average for the country)? I say most certainly not. You also mention some things that mortgage companies can and will easily do themselves.

I don't think anyone thinks we don't need real estate agents, they definitely are beneficial to a transaction that most only have a few times in a lifetime. Most people do think they are grossly overpaid with the current commission structure. The barrier to entry is far too low and the education level of most is minimal. The days of the MLS monopoly are over and the industry will have to adapt.

I don't think there is any other profession with as many part time agents as real estate. I've purchased 3 homes and used an agent one time. He was a big name agent that had the listing and all of the paperwork he ever produced was a mess. It was full of typos and incorrect calculations. Every other soccer mom is showing houses now but I've noticed the housing market is starting to thin them out though. The house down the street is listed for $900k + and I see the agents showing it. The realtor stereotypes are definitely present.

Yes there is a reason at one point this year there were more realtors than homes for sale. Its an easy gig to get into and the nice commissions on rapidly appreciating homes were too baked in.

[Jersey Boss]

Sure, but is it really worth $12,000 (3% commission on a $400,000 home, which is apparently around average for the country)? I say most certainly not. You also mention some things that mortgage companies can and will easily do themselves.



Yes there is a reason at one point this year there were more realtors than homes for sale. Its an easy gig to get into and the nice commissions on rapidly appreciating homes were too baked in.

It would be cost effective to hire an attorney for way less money.

[Anonymous.]

I bought property in OKC without a realtor or RE attorney. Honestly it was way easier than I imagined. Every form you need is available on oklahoma.gov.

When I walked into the title company at close, they were actually surprised I had all the proper docs without a realtor.

[jccouger]

Real estate agents overall are easily the most overpaid profession in America, 2nd place probably wouldn't even come close.

[kukblue1]

https://www.cnn.com/2023/11/30/econo...ber/index.html Have we crashed?

Pending home sales just hit their lowest level in history.

In October, US pending home sales fell 1.5% putting sales down 6.6% over the last year.

This also marks the 23rd STRAIGHT decline in US pending home sales.

To put this in perspective, pending home sales are more than 10% BELOW what they were in 2010.

They are also ~3% below the pandemic low when the global economy was in a lockdown.

All as mortgage demand is at its lowest levels since 1994.

The housing market is coming to a complete halt.