OKC Real Estate Market

[Pete]

We have to be very close to being over-saturated here in OKC.

There are tons of them around and the ones I go by on a frequent basis rarely seem to have occupants.

[liirogue]

Some cities are limiting the number of short-term rentals in an effort to flip some housing back to long-term. Has there been any similar talk in OKC?

[gjl]

The AirBnB across the street from me stays rented out continuously. It is a huge 3000 sq ft house that advertises Huge Centrally located Okc remodeled Cabin Style Home. Perfect for Entertaining any occasion. Home sleeps up to 15 guests. Home has 4 bedrooms 10 beds 3 Living rooms, 3 Bathrooms, big jacuzzi tub w/ Tv, 2 Dining Rooms, 2 Bars, Updated Kitchen, a Game room, Gym, Laundry room & Kobe Inspired Office. Located just 8 miles from the Airport & Downtown Okc. This home has something for everyone. Its extremely unique and you wont find anything like it.. The people that checked out this morning were there for a week.

[fortpatches]

The AirBnB across the street from me stays rented out continuously. It is a huge 3000 sq ft house that advertises Huge Centrally located Okc remodeled Cabin Style Home. Perfect for Entertaining any occasion. Home sleeps up to 15 guests. Home has 4 bedrooms 10 beds 3 Living rooms, 3 Bathrooms, big jacuzzi tub w/ Tv, 2 Dining Rooms, 2 Bars, Updated Kitchen, a Game room, Gym, Laundry room & Kobe Inspired Office. Located just 8 miles from the Airport & Downtown Okc. This home has something for everyone. Its extremely unique and you wont find anything like it.. The people that checked out this morning were there for a week.

​My family get a large AirBnB like that every few months for a family get together.

It is so much easier than going to someone's house. Any not all of us have houses that can accommodate all like 15 of us without air mattresses, etc. Plus, this way, no one has to do a full-house panic clean or baby-proof for the nieces/nephews. After the costs are split 5 ways, it's usually only like $250.

[stlokc]

The AirBnB across the street from me stays rented out continuously. It is a huge 3000 sq ft house that advertises Huge Centrally located Okc remodeled Cabin Style Home. Perfect for Entertaining any occasion. Home sleeps up to 15 guests. Home has 4 bedrooms 10 beds 3 Living rooms, 3 Bathrooms, big jacuzzi tub w/ Tv, 2 Dining Rooms, 2 Bars, Updated Kitchen, a Game room, Gym, Laundry room & Kobe Inspired Office. Located just 8 miles from the Airport & Downtown Okc. This home has something for everyone. Its extremely unique and you wont find anything like it.. The people that checked out this morning were there for a week.

Not to go down a rabbit hole but this house has 3000 Square feet and in addition to 4 bedrooms, it has 3 living rooms, 2 dining rooms, a game room, a gym and an office among other rooms? I'm confused. Is the 3000 SF a misprint? Is it really like 6000 SF?

[gjl]

County Assessor has it listed at 3363 sq ft. It's a really weird floor plan and 2 story. We were in it when the previous owner was having an estate sale right before he sold it. The original garage was converted to the main house then an new garage added on. The new owner who converted it to an AirBnB turned the new garage into the gym area with TVs and beds we see when the garage doors are open. I don't thing that new 2 car garage area is considered in the assessor's sq ft totals.

[gjl]

He paid 260K for it and spent an entire year remodeling it. We haven't been in it since the remodel but I'm guessing from the pics of the inside he spent at least another 100K if not more. It didn't look anything like this when we were in it before the sale.
https://www.airbnb.com/rooms/5331302...5-c804f9b63427

[Jeepnokc]

Some cities are limiting the number of short-term rentals in an effort to flip some housing back to long-term. Has there been any similar talk in OKC?

I have two STRs. One in Gatewood and one in Crestwood. When we applied for our city licenses last year, there was a lot of discussion from the board about numbers around and saturation. What was disappointing is they were using VRBO and AirBnB maps to show the number of STRs in the area of which most are unlicensed. Thus the people trying to be legal are penalized by the city's lack of enforcement of their rules. If you are going to use that data...then use it to enforce the licensing laws and shut the unlicensed ones down.

[soonerguru]

We have to be very close to being over-saturated here in OKC.

There are tons of them around and the ones I go by on a frequent basis rarely seem to have occupants.

Let's hope so. This is a trend I would like to see abate.

[stlokc]

I have to think it is better for a city for travelers to stay in hotels rather than Air B&Bs.

With an Air B&B, a family is likely to bring food with them or buy it in a grocery store. In a hotel you're going out to eat most of your meals. Also, rather than doing a lot of "hanging around your house," you're more likely to be taking advantage of public spaces, like parks, museums or shops.

Maybe this is anecdotal but I have had both types of vacations and I know we have spent more, and visited more of the city's attractions, when we have been in hotels as opposed to rented houses.

[gopokes88]

I hate AirBnB's. The massive amount of fees, hosts that think "good customer service" is texting you everyday, inconsistent product, begging for good reviews, no rewards.

Back to hotels only for me

[Jeepnokc]

STRs have a place and purpose. I spent about 75 nights last year in hotels and maybe 2 weeks in STR. We use STRs for vacation rentals at the beach where they make sense with large group. When travelling as a couple or by myself...always a hotel. as usually cheaper, known product versus some unknown host and usually less fees but hotels still have hidden fees also (Parking, resort fee, internet, etc). Most of our rentals are for a week or longer and tend to be professional people here for work and want something more comfortable than a hotel room after working all day. My daughter is doing an internship in Durant this summer and was far safer, comfortable and economical to put her in a STR for the two months she is there versus a hotel room.

As far as what is does to the real estate market....kind of a two edge sword. Most strs that are successful are well kept up and maintained which helps but the in and out of people prevents knowing your neighbors

That being said....I am on some host listserves and there are some real crazies out there who should not be in the hospitality business.

[Richard at Remax]

I hate AirBnB's. The massive amount of fees, hosts that think "good customer service" is texting you everyday, inconsistent product, begging for good reviews, no rewards.

Back to hotels only for me

This is how I feel as well. The no rewards is a big one, but for me one thing is safety and security in a hotel vs a AirBNB. Seen way to many pretty and dolled up pictures only to get there and you are surrounded by all sorts of sketch.

[catch22]

I hate AirBnB's. The massive amount of fees, hosts that think "good customer service" is texting you everyday, inconsistent product, begging for good reviews, no rewards.

Back to hotels only for me

I was big into AirBNB when it first came out. The novelty and convenience of it was great. $50 for a room by the beach? Deal. No corporate check in/check out schedule.

Then it turned into $299/night plus $100 in fees. Paying a cleaning fee, and then expecting to clean the room before leaving is completely asinine. I don’t trash rooms, and I will always do a quick tidy before checking out of any hotel. But I’m not washing the bedding or sweeping the floors. I haven’t even considered, let alone looked at AirBNB in years. I can get a hotel for just as cheap, and know with great certainty that it will actually have privacy, I’ve stayed at some AirBNB’s where I could just feel the eyeballs on me in the shower, or while changing in my room, etc. just some weird vibes from some of my stays. Like, yep there’s definitely a false mirror in here or a hidden camera.

[soonerguru]

I hate AirBnB's. The massive amount of fees, hosts that think "good customer service" is texting you everyday, inconsistent product, begging for good reviews, no rewards.

Back to hotels only for me

Right there with you.

We used to use them when we visited NYC before the city enacted a lot of restrictions. It made sense then. But now, it's often more expensive to stay in an AirBnB with fewer amenities for the traveler.

And, to your point, there are often myriad quirks involved, not to mention often landing in neighborhoods that aren't all that great. Nothing to walk to. Stuck in weird residential areas. No cable or satellite TV options, and on and on.

I realize there are many stellar Airbnbs out there but once you add the cleaning fees, booking fees, etc. you are going to pay dearly for them.

My biggest issue is they take important housing stock away from would-be residents. When we have a housing affordability crisis this is not good for the community.

We have a large one on our street with several bedrooms and a pool. It's a great destination for parties or large reunions, but it's hell for the neighbors who live next door. Most are elderly and afraid to notify the authorities when things get out of hand. And, regarding licensing, the property is properly licensed, kept up well, etc. It still sucks for the people who live next to it. We know this because they tell us.

[soonermike81]

Yeah Airbnbs definitely have its place and can be more expensive if you’re traveling as a couple or small group. But if you’re going somewhere as a large family or group of friends, it’s almost a no brainer financially. Plus, many families enjoy cooking and then eating/hanging out in a common space. Almost impossible to do this with hotels. If just my wife and I are vacationing anywhere, we’ll likely never utilize Airbnb. If my wife and I are planning a vacation for a large group, we’ll likely look at Airbnb first.

[kukblue1]

with mortgage rates pushing 8% now on a 30 year loan how are things going in the area. Saw this on old twitter: The housing market affordability index is now ~10% BELOW the 2006 lows.

This is officially the least affordable housing market in US history.

Mortgage rates in many states are approaching 8% and the median house now costs 560% of the median income.

In 2008, the median home price was 360% of the median income.

Even if home prices fell 30% from current levels, affordability would STILL be worse than pre-pandemic.

[AP]

I'm trying to sell my house in Shepherd and it's been tough going. Only 15 showings in 2 months. The market requires patience at this point.

[April in the Plaza]

with mortgage rates pushing 8% now on a 30 year loan how are things going in the area. Saw this on old twitter: The housing market affordability index is now ~10% BELOW the 2006 lows.

This is officially the least affordable housing market in US history.

Mortgage rates in many states are approaching 8% and the median house now costs 560% of the median income.

In 2008, the median home price was 360% of the median income.

Even if home prices fell 30% from current levels, affordability would STILL be worse than pre-pandemic.

It’s a pretty rough market right now, imo. The sellers definitely missed the window where top dollar was still available (May - July 2022).

[Shortsyeararound]

I was big into AirBNB when it first came out. The novelty and convenience of it was great. $50 for a room by the beach? Deal. No corporate check in/check out schedule.

Then it turned into $299/night plus $100 in fees. Paying a cleaning fee, and then expecting to clean the room before leaving is completely asinine. I don’t trash rooms, and I will always do a quick tidy before checking out of any hotel. But I’m not washing the bedding or sweeping the floors. I haven’t even considered, let alone looked at AirBNB in years. I can get a hotel for just as cheap, and know with great certainty that it will actually have privacy, I’ve stayed at some AirBNB’s where I could just feel the eyeballs on me in the shower, or while changing in my room, etc. just some weird vibes from some of my stays. Like, yep there’s definitely a false mirror in here or a hidden camera.

Agreed. Have used a few times in the past, but won't anymore. Cheaper than hotels sure, but you want me to work for my discount while I am on vacation- no thank you. Just like self check out lanes at the grocery store- I don't get a discount for being my own cashier, and I hate to do that as well. I know I sound like an old man on the porch and that is ok. "Get off my lawn!"

[OKCRealtor]

Things have definitely slowed in August, part of that is seasonal with schools going back, happens every year. Seeing lots of price decreases. New builds in particular. It really depends on what & where now. Median days on the market is still remarkably just 10, up from 9 days the previous month. Average DOM is over 3x that.

We had 5 straight months of price increases this year to new all time highs from Feb-June while July stayed flat. August remains to be seen if they hold or not. Both the financial markets and housing market were experiencing some very similar things at this time last year. Prices ultimately dipped from August - through end of last year before recovering and hitting new highs this year. As long as the bond markets are in turmoil and the 10 year keeps rising we could very well be in for a repeat this year. Prices may dip a little but don't think much as long as people have jobs before ultimately starting a sustained recovery next year into what should be a better market with rates likely to start going the other way at some point in next 12 months.

For the cash buyers this is a great time to be thinking about doing something. I think real estate prices may be the lowest we ever see them again at some point in the next 6 months. There is still so much demand that when rates do finally go back down we should have a ton of people moving and hoping to buy.

[Pete]

It looks like the fastest movers are the homes in the $250,000 to $350,000 range.

That seems to be just about the minimum cost for an at least mostly redone 3BD 2BA in a decent location.

Does this sound about right to others?

[aDark]

It looks like the fastest movers are the homes in the $250,000 to $350,000 range.

That seems to be just about the minimum cost for an at least mostly redone 3BD 2BA in a decent location.

Does this sound about right to others?

That's exactly what I'm seeing. Homes about $400 seem to be sitting longer than they had been just 6 months ago.

[aDark]

...I think real estate prices may be the lowest we ever see them again at some point in the next 6 months. There is still so much demand that when rates do finally go back down we should have a ton of people moving and hoping to buy.

Really? Surely the cost of entry into a home will go back down to some extent, right? I'm sitting on cash and scoping rental opportunities but I've been sitting tight until prices start to fall. They only seem to go up so far.

[OKCRealtor]

Really? Surely the cost of entry into a home will go back down to some extent, right? I'm sitting on cash and scoping rental opportunities but I've been sitting tight until prices start to fall. They only seem to go up so far.

Unless we start to see a lot of layoffs and people are forced to sell it's hard to see them dipping much which doesn't appear likely. People will just sit tight on their 2-4% mortgages while more people are forced to remain renters or have to wait longer to become first time buyers. From an investor standpoint it would be nice if they dipped but supply would have to be greater than demand and we are still nowhere near that. Demand is still very strong under 250k everywhere. That doesn't mean you won't find a better deal in a slower market this Fall/Winter but I wouldn't expect any pullback to last long. Economy is still very healthy and people have good jobs.