OKC Real Estate Market

[chssooner]

Just Google other banks having major troubles right now. First Republic is another large, large, large bank having major difficulties.

[Just the facts]

Any bank heavy in the tech industry is going to have a problem as the tech industry struggles with revenue drops. No different than Oklahoma banks heavily invested in oil and gas when the oil bust hit.

[OKCRealtor]

Mortgage rates continuing to drop with the market turmoil.. down about 70 basis points now since beginning of March to their lowest levels since early September. Market is strong already and this should give it another boost.

[April in the Plaza]

Mortgage rates continuing to drop with the market turmoil.. down about 70 basis points now since beginning of March to their lowest levels since early September. Market is strong already and this should give it another boost.

I’m a bit shocked the market is staying this strong in the face of J. Pow’s QT and rising rates.

Are there just a bunch of cash buyers or folks with huge down payments, so rates are less of a concern?

[OKCRealtor]

I’m a bit shocked the market is staying this strong in the face of J. Pow’s QT and rising rates.

Are there just a bunch of cash buyers or folks with huge down payments, so rates are less of a concern?

I think it's a number of factors. There's a lot of pent up demand still from last few years, a lot of people prefer current market conditions over the crazy aggressive bidding wars we had on everything for 2 years. The labor market is still strong, unemployment very low & most people are earning more than they ever have. We are still very cheap nationally compared to other major cities and people are still moving here as it's an attractive destination. OKC economy doing great as a whole, doesn't hurt oil & gas has had a little resurgence although certainly not a boom.

At the end of the day people always need to buy & sell for a variety of reasons and every market presents different situations for people. I am not seeing big out of state money recently with investors, not saying it's not happening but I certainly don't think to degree it was. I have local investors that I've worked with for years, mom & pop types, that are always doing things regardless of conditions. Plenty of people have cash here that buy rentals & investment properties here and there and are impervious to the rates. Should the market take a dip if things really do get bad there are plenty of people waiting/praying/wishing/believing that will happen and would jump & buy. Mortgage application & demand here staying very strong, I feel like we can handle 8-9% rates. It's still better to buy vs rent regardless of the rates if you don't already own.

Edit: One thing I didn't mention is the supply is still quite low, more homes selling than going active by a good bit every week right now. Higher rates hasn't only dampened demand it has also done the same to supply. That imbalance does not appear likely to correct anytime soon, so sellers are still getting premium prices and selling quick in most cases if they're priced right.

[Pete]

^

Great summary.

When it gets a bit more difficult to buy, you have rental property investors stepping up because of the increase in renters and rental rates in general.

Also, there are a ton of AirBnB investors in this market, as many have done well and now have more money to use for additional purchases.


Decent houses in my neighborhood continue to go under contract at full price in about a week. I'm sure the new home market has softened but I'm witnessing the opposite in established, well-located neighborhoods which bodes well for spring and summer.

[Just the facts]

I’m a bit shocked the market is staying this strong in the face of J. Pow’s QT and rising rates.

Are there just a bunch of cash buyers or folks with huge down payments, so rates are less of a concern?

This is proof the the Fed is not fighting inflation hard enough. The whole point of raising rates is to kill new home loans and weaken the labor market. These little .25 rate increases aren't going to do that and the Fed is just dragging out the evitable.

[chssooner]

This is proof the the Fed is not fighting inflation hard enough. The whole point of raising rates is to kill new home loans and weaken the labor market. These little .25 rate increases aren't going to do that and the Fed is just dragging out the evitable.

Spoken like someone who already has a mortgage and isn't trying to buy a home. The elitism is reeking from you. Huge rate increases would kill the economy, and lead to large, large layoffs.

[BoulderSooner]

This is proof the the Fed is not fighting inflation hard enough. The whole point of raising rates is to kill new home loans and weaken the labor market. These little .25 rate increases aren't going to do that and the Fed is just dragging out the evitable.

that is not the reason at all ..

slowing inflation is why you raise rates period .. the by product of that MIGHT weaken the labor market .. but that is not the intent ..

and new home builds and loans have already been slowed ..

[Just the facts]

that is not the reason at all ..

slowing inflation is why you raise rates period .. the by product of that MIGHT weaken the labor market .. but that is not the intent ..

and new home builds and loans have already been slowed ..

https://www.barrons.com/articles/fed...on-51671229886

I just realized you might have to pay to read that article, but there are a thousand more just like it using Google.

Anyhow, the Fed has explicitly said they want to weaken the labor market thru rate increases to help cool inflation. You can express your opinion all you want but I'm just telling you what The Fed has said.

[soonergolfer]

This is proof the the Fed is not fighting inflation hard enough. The whole point of raising rates is to kill new home loans and weaken the labor market. These little .25 rate increases aren't going to do that and the Fed is just dragging out the evitable.

Unemployment numbers going up is an indicator that inflation may be coming down, not the main purpose. The simple desired result of raising the interest rates is to have inflation % lower than the interest rate %.

[Just the facts]

Explain how higher rates lowers inflation then. What is the mechanism that says a change in rates results in a change in inflation?

[Just the facts]

I'll just leave this here for anyone that wants to read it.

https://apnews.com/article/inflation...870a3eef5e56c5

[OKCRealtor]

Inflation has already come down quite a bit from it's peak. Yes, it's still much too high but things are going to take time. We can't unravel 15 years of easy money overnight. The market & economy has also cooled quite a bit, we'll have a very low growth year and that's if things go well and we avoid a recession. I don't think intentionally jacking the rates to break the economy is the best solution, although it is a scenario. Keep in mind next year is a presidential election year as well... people may not be paying attention now but they will be.

[gjl]

I'll just leave this here for anyone that wants to read it.

https://apnews.com/article/inflation...870a3eef5e56c5

Maybe this is why.

https://www.theguardian.com/us-news/...a-inflation-us

[gjl]

Inflation has already come down quite a bit from it's peak. Yes, it's still much too high but things are going to take time. We can't unravel 15 years of easy money overnight. The market & economy has also cooled quite a bit, we'll have a very low growth year and that's if things go well and we avoid a recession. I don't think intentionally jacking the rates to break the economy is the best solution, although it is a scenario. Keep in mind next year is a presidential election year as well... people may not be paying attention now but they will be.

I don't know why anyone believes the BS inflation numbers put out by the government. Inflation for the basic needs of day to day living has not come down at all. One trip to the grocery store, paying monthly utility bills. Eating out in restaurants, transportation costs, car/home insurance, clothing, the things people spend money on for every day living has not gone down at all and continues to go up monthly.

[PoliSciGuy]

I don't know why anyone believes the BS inflation numbers put out by the government. Inflation for the basic needs of day to day living has not come down at all. One trip to the grocery store, paying monthly utility bills. Eating out in restaurants, transportation costs, car/home insurance, clothing, the things people spend money on for every day living has not gone down at all and continues to go up monthly.

...which is exactly what those "BS inflation number put out by the government" consistently say

[dcsooner]

Inflation comes down to this.

The cost of raw materials increased because of SCARCITY during the pandemic. That increase cost was reflected down stream in manufacturing, transportation of goods and services.

SCARCITY drove the price of eggs to $5-$6 doz. Increased production has egg prices falling. Many bakeries in my area ALMOST closed because of increased egg prices.

Workers were scarce during the pandemic and those who where available cannot live on $7.25 hour so Employers are forced to raise wagers to get the number of workers needed or the quality of skilled workers needed.

Retailers are forced to RAISE the cost of goods and/or services because of the increase in salaries and the increase in wholesale products due to the reasons stated above or go out of business.

This (rising prices) applies to ALL levels of the supply chain raw materials , manufacturing, wholesale and retail

BOTTOM LINE: SCARCITY AND INCREASED LABOR COSTS DRIVE INFLATION\\MAKE MORE MONEY THINGS COST MORE

E.G WE DON'T EARN 15 CENTS AN HOUR TODAY NOR DOES A MC DONALDS HB COST 15 CENTS. Remember ARAB oil embargo?Gas lines (high demand, low supply means higher costs)

Rising costs (inflation) is NORMAL in the context of economics, the desire is that it does not far surpass salaries to make things unaffordable. Even if that happens consumers will adjust to the higher costs by foregoing unnecessary discretionary spending

[Bowser214]

Downtown Real Estate Partners LLC paid Reno Lee Real Estate Partners $1,287,500 for 38,500 square feet of land at 626 W Reno Ave. Allison Barta Bailey handled the transaction.

https://www.loopnet.co.uk/Listing/62...y-OK/24286846/

[Jeepnokc]

Downtown Real Estate Partners LLC paid Reno Lee Real Estate Partners $1,287,500 for 38,500 square feet of land at 626 W Reno Ave. Allison Barta Bailey handled the transaction.

https://www.loopnet.co.uk/Listing/62...y-OK/24286846/

Lol. That's my truck sitting catty corner on the top left corner of the lot. I wonder what their plans are for the site or are they just going to sit on it?

[sooner88]

Downtown Real Estate Partners LLC paid Reno Lee Real Estate Partners $1,287,500 for 38,500 square feet of land at 626 W Reno Ave. Allison Barta Bailey handled the transaction.

https://www.loopnet.co.uk/Listing/62...y-OK/24286846/

That entity looks to be tied to Johnson & Associates

[OKCRealtor]

Quick market update you may find interesting. Average sale price in the MLS increased $15,000 in March over February!! Median days on market trended down to 18. Interest rates have come way off their highs and been trending lower for several weeks now. Inventory has remained flat the last 2 months and still low overall. We are seeing some very aggressive multiple offer situations again ala 2021. I was in a multiple offer in Edmond yesterday on a house that got 15 offers!! As long as rates hold/trend lower prices look to shoot back up quickly with the demand.

[Pete]

^

Thanks for the information.

Now that rates have stabilized, that is probably spurring buyers to pull the trigger rather than waiting for rates and prices to go down.

[OKCRealtor]

^

Thanks for the information.

Now that rates have stabilized, that is probably spurring buyers to pull the trigger rather than waiting for rates and prices to go down.

Yep, we need inventory to catch up and level things out. For those waiting on prices to fall and buy the dip it appears it has already happened so you may have missed if you were waiting. Time will tell & rates will dictate the story to some degree but this may still be a good time before prices shoot even higher.

[BoulderSooner]

Yep, we need inventory to catch up and level things out. For those waiting on prices to fall and buy the dip it appears it has already happened so you may have missed if you were waiting. Time will tell & rates will dictate the story to some degree but this may still be a good time before prices shoot even higher.

as a realtor have you ever told a client that this is not the time to buy??