OKC Real Estate Market

[Jeepnokc]

Just wanted to add to the discussion:

Tomorrow we are closing on a new home purchase in the Crestwood neighborhood of OKC (Bound by NW 23rd, 16th, May and Villa). We are paying 20% down to avoid PMI and are locking in at 7% for 30 years. We have lived in our current house for 16 years, paid it off three years ago and will keep it as a rental. Our plan is to wait until rates drop a little and then refinance on a 15 year. We did the same thing when we bought our house in 2007. We locked in at 6.875% for 30 years then refinanced in 2011 at 4.5% for 15 years and our payment only went up $20 per month. I am hopeful that we can do the same thing in 3-5 years, but we can afford the higher payment. I have always heard marry the house, date the rate.

great thinking Congrats on new home.

[kukblue1]

Mortgage demand fell to a new 30-year low in January 2024, down 54% from the pandemic peak, according to Reventure.
Mortgage demand is down 14% over the last year and 40% from pre-pandemic levels.
Even as mortgage rates have come down from 8.1% to 6.8%, mortgage demand is getting worse.
Still, 90% of borrowers have mortgage rates below 5%.
Even with a drop from 8% to 6% mortgages, many homeowners have a financial disincentive to move.
Affordability is getting worse.

[OKCRealtor]

January was a pretty hot month in the market, a lot of people contracted who had been on the fence or were unable to last year and we saw a big shift. More homes went pending the last 2 weeks than came on the market. First time in several months that has occurred. Spring market has come early but looks like the Fed has kicked the can down the curb on rate hikes. Still things are looking much better than last year & prices will gradually go up from here as rates gradually come down.

[cinnamonjock]

Still crossing my fingers I can refinance soon

[Pete]

January was a pretty hot month in the market, a lot of people contracted who had been on the fence or were unable to last year and we saw a big shift. More homes went pending the last 2 weeks than came on the market. First time in several months that has occurred. Spring market has come early but looks like the Fed has kicked the can down the curb on rate hikes. Still things are looking much better than last year & prices will gradually go up from here as rates gradually come down.

Appreciate the info and analysis.

I walk a ton through my neighborhood and there are very few homes for sale at present. Part of that is the time of year, but I can't recall so little inventory in my 5-6 years living in this area.

It seems the nicely remodeled homes are the ones that are going particularly fast. People are too busy these days to buy cheap and then deal with a remodel... Everyone wants things done before they move in. Still a lot of flips in my area and you see them almost everwhere in the core.

[bison34]

Still crossing my fingers I can refinance soon

I am grateful I refinanced in November 2020.

[OKCRealtor]

Appreciate the info and analysis.

I walk a ton through my neighborhood and there are very few homes for sale at present. Part of that is the time of year, but I can't recall so little inventory in my 5-6 years living in this area.

It seems the nicely remodeled homes are the ones that are going particularly fast. People are too busy these days to buy cheap and then deal with a remodel... Everyone wants things done before they move in. Still a lot of flips in my area and you see them almost everwhere in the core.

Yea the existing inventory levels are still pretty low although they have improved quite a bit. We have a significant amount of new construction on the market but many can't afford a brand new home even at entry level prices. I think we'll see more listings this year and more buyers enter the market as well as folks are realizing that rates aren't taking another big drop anytime soon.

[FighttheGoodFight]

Appreciate the info and analysis.

I walk a ton through my neighborhood and there are very few homes for sale at present. Part of that is the time of year, but I can't recall so little inventory in my 5-6 years living in this area.

It seems the nicely remodeled homes are the ones that are going particularly fast. People are too busy these days to buy cheap and then deal with a remodel... Everyone wants things done before they move in. Still a lot of flips in my area and you see them almost everwhere in the core.

Remodeling is also expensive now as well as getting a reliable contractor to do work. I found myself doing more DYI projects than I normally would just because the cost is still high in the construction industry. Which I am sure will level out in the next 10 years.

[Pete]

Remodeling is also expensive now as well as getting a reliable contractor to do work. I found myself doing more DYI projects than I normally would just because the cost is still high in the construction industry. Which I am sure will level out in the next 10 years.

The problem is that any good tradesmen are tied up by home builders or flippers because they offer them continuous, steady work. It's very hard to find someone who does good work to do small jobs because they are all busy.

I'm getting ready to replace all my interior doors, baseboards, casings and a good chunk of my flooring and I've pretty much decided to do it myself, bit by bit. Worse case, I'll have to pay someone to finish what I start but I did this same project in my house in California and it was extremely satisfying, although back-breaking.

[OKCRealtor]

Quick February Market Update - things cooled a touched as mortgage rates rose back above 7% in comparison to January. We are still in a bit of a hot/cold market as we experience big rate volatility still.

Of note though prices moved up 4% total from January to February and moved up a staggering 6.4% year over year from Feb '23 to Feb '24. As buying conditions continue to ease prices should continue to steadily climb from here. If you know anyone waiting for rates to fall might want to take advantage of the opportunity now because prices are going to continue to rise.

[jn1780]

There has been a settlement on realtor commissions.

https://www.cnn.com/2024/03/15/econo...ent/index.html

I wonder if there will be stair step pricing and not just a flat 6% rate? Is there really linear amount of additional effort to sell a 200,000 dollar home vs a 500,000 dollar home?

[BoulderSooner]

Is there really linear amount of additional effort to sell a 200,000 dollar home vs a 500,000 dollar home?

that answer is no ..

[FighttheGoodFight]

that answer is no ..

I disagree. They will want to sell the higher one faster to get the higher percent

[Richard at Remax]

There hasn't been a settlement on commissions. They have always and will always be negotiable. The old guard hates this but I have never done a deal for the straight supposed rate, it's been different for each one. Most of the time it's performance based. The listing agent has always controlled how much commission to give to a buyers agent. We had to disclose to the seller what we were giving the other side all along. The seller in the original lawsuit basically got the the closing table and acted like he didn't agree to pay the listing agent. From what I read it was disclosed to him. Once again, the listing agreement is between the seller and I to pay me a certain amount to do what I need to do to sell their house. That includes me offering a contract on the MLS for a certain rate for someone to bring me a buyer. If I procure the buyer, then my rate was always reduced.

The biggest change to me is that the MLS protected the buyers agent by offering a set amount in the MLS. Now it will NOT be allowed. This is to prevent an agent possibly not showing a certain property if an amount was lower than they wanted. So now, a listing agent is going to be bombarded with calls and texts once a listing goes live to see if the seller if going to offer any compensation. If the seller doesn't want to offer any, or a reduced amount, then (like or not) an agent still will probably move along and go to another property. I have rarely reduced the buyer agent side. You never know how many houses they have shown that client, how long they have been working for them, ect. Just doesn's seem right.

The biggest loser here is the buyers agent. If a seller doesn't want to offer compensation, then I have to ask my buyer to cover whatever amount we agreed to up front. If the buyer can't afford me, then 99% of the time they will just go to the listing agent and that agent will get both sides, cutting me out. If a seller is open to compensation but my buyer can't afford it, I can now send a compensation agreement to to the seller to have them pay for my commission. Guess what, we are back where we started.

VA buyers are legally not allowed to pay any commissions. So as it stands right now, if you represent a VA buyer and seller won't offer commission to the buyers agent, then buyers agent is screwed.

If they think that prices are going to come down and be more affordable, I think they are kidding themselves. The seller will just pocked more $$$. I will always highly encourage a seller to offer compensation.

It's more important that ever for me to switch my business to trying to acquire as many listings as possible.

Good or bad, I think this will severely weed out your weekend realtors as well. Just too much uncertainty right now.

[OKCRealtor]

A judge still has to approve it, however I wasn't expecting to see NAR agree to settle it so quick. As Richard said not being able to advertise compensation in the MLS will be a big change. Buyer broker agreements will now be required like a listing agreement on the selling side. Honestly, that may be a good thing. Will waste an awful lot less time not messing around with serious buyers.

Buyers that can't afford an agent will be adversely impacted. If you think they will negotiate a better deal for themselves through the listing agent representing the seller that's not going to happen. Not to mention on their own during inspections, appraisal, etc. It's a lot sometimes and experienced agents will save buyers thousands. Sellers will just pocket more and we will be compensated well to ensure they do. Also, VA buyers are totally screwed. It's really hard to get VA offers accepted sometimes even if you know all the right things to do. May see even less veteran offers getting accepted if they can't afford an agent (most can't). FHA a touch easier.

Commissions have always been negotiable & it is highly encouraged to offer competitive buyer compensation. I'm not sure how much this will change as there have always been flat fee options, discount agents, etc. There are tons of them out there and you get what you pay for I don't think that will change much. Experienced agents, especially ones with large marketing exposure, will still charge 6% in many cases. I'll still pay 3% to sell a personal property, it will bring me the most qualified buyer and I'll also have a more motivated buying agent to get it done.

We have way too many agents out there already, if anything hopefully it will weed out the ones who barely do any business and generate more business towards experienced agents. Listings will be more critical for agents and although the expertise and knowledge on how to win those won't change it's really the buyers agents that do all the running around working like crazy sometimes. I sincerely hope that buying agency isn't affected too much just because I know how much we help them and guide them through the process. Especially the mid and lower priced points, first time buyers, and people who are generally not knowledgable on the home buying process. Buying a house is very hard sometimes and a lot work.

We'll see what happens, 2024 has been a bit of a roller coaster already.