Demand for vacation homes persists in Oklahoma City and its suburbs
It’s not quite the season – the usual moderate vacation home buying season – because the racing housing market is barely slowing down.
If anything, the sales growth rate has slowed. Nationwide, this is what happened in October, according to the National Association of Realtors: sales increased 0.8% from the previous month, a far cry from the 7% gain in September. .
Sales here fell 9%, from 2,651 in September to 2,415 in October, according to the Oklahoma City Metro Association of Realtors.
But October sales were still higher than before the coronavirus in October 2017, 2018 and 2019 – by 33.2%, 21.2% and 15.8%, respectively.
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And prices have continued to rise – the median up 2.5% and the average up 4.6%, month-over-month, across the metropolitan real estate agent service area.
The increases since the start of the year have continued to scare: in Oklahoma City and surrounding suburbs, the median price through October, $ 235,000, and the average price, $ 278,876, are up 8.8 % compared to last year.
Home sales fall, demand persists
So why are the prices continuing to rise even though sales are dropping here from September to October? The number of new registrations even increased in October.
Demand is still very high. The number of new listings in October, 1,996, was higher than the number of homes still on sale at the end of October, 1,831.
That’s a one-month supply, in a market where homes have sold out in just 15 days on average.
“We don’t have an inventory problem,” said Jared Kennedy, founder of Lime Realty. “We have a supply and demand problem, and although demand is slowing down a bit, it is still very high.
“We sell the same amount, or more, than normal in all (price) ranges. Inventory is fine. But demand is very high, so the way the market is approached is very good for sellers. . “
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Landon Whitt, agent and CEO of OKCReal, said he saw what could be some cooling in investor demand. Foreign investors have helped to increase demand and prices. This made entry into a home particularly difficult for first-time buyers.
“I’ve had three different investors who got cold feet after they made an offer and pulled out of the deal, just over the past two weeks, all over concerns about volatile returns,” Whitt said. . “Customers bringing money over the rating have been over for us since September.”
Is the demand for housing turning?
Something seems to be going on in the market, said Kacie Kinney, agent at Keller Williams Elite.
“Things seem to be slowing down, but it’s hard to say if it’s seasonality, buyer fatigue or the market,” Kinney said. “Many buyers have put their searches on hold over the holidays because the stress of losing multiple offers has become too great.
“For me, as a listing agent, we still have multiple offers on most listings, but we could get five or six offers, whereas a few months ago we were getting 10-15 or more offers. We have listed two extremely similar houses. in the same neighborhood three months apart. The first one this summer received 16 offers and the next one received six in October. Only time will tell.”
Not all officers detected a sign of a slowdown.
“Busy, busy! Pre-holiday closures and registrations coming in December!” said Emily Frosaker-Kyle of Modern Abode Realty.
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Steve Bennett of Redbud Property Inspections LLC said he still has his work cut out for him.
“My business did 250 home inspections in October. Our third quarter average was 222 per month. November will likely end closer to the third quarter average. It doesn’t seem to be slowing down much on our end,” he said. -he declares.
For their part, builders in the metro area started more homes in October than in September, and 5,535 so far this year in Oklahoma City, unincorporated Oklahoma County, Bethany, Blanchard, Choctaw, Edmond, Midwest City, Moore, Mustang, Newcastle, Noble, Norman, Shawnee and Yukon, according to the builder’s report from Dharma Inc ..
This is 8% more than in 2020.
New to you? Do these things
Vanessa Johnson of eXP Realty, who sits on the board of directors of the Metro Association of Realtors, said she always advises new owners to:
• Change all locks and reset all access codes, including for garages. “You never know who has a key,” she said.
• Get to know your neighbors, especially if you have children. “Introduce yourself and get a feel for them,” she said.
• Update your address for all scheduled deliveries, including regular packages.
Additionally, RISmedia’s Housecall, a housing industry blog, recommends people living in a new or newly arrived home locate the fuse box, find the water and gas shutoff valves, test smoke and carbon monoxide detectors, create emergency plans and find out about HVAC systems.
Senior Business Writer Richard Mize has covered housing, construction, commercial real estate and related topics for the newspaper and Oklahoman.com since 1999. Contact him at [email protected]