Oklahoma City Real Estate News

Spring has sprung early in Oklahoma City, and many new businesses are popping up all over the metro, or are in the early planning stages to appear soon.

A new Aloft Hotel hotel has been planned to be constructed along with a commercial development surrounding it in the NW OKC area, just south of Memorial between May and Penn. This will be the second Aloft location to be built in Oklahoma City, their other location is in Bricktown.

Potbelly Sandwiches also has plans to enter the Oklahoma market. There will be two new locations, one located in the Chisholm Creek area off of Penn and Memorial and another location located on Rockwell and N.W. Expressway.

Amazon has also began construction on a 300,000 square foot sortation facility in Oklahoma City. Most Amazon sorting facilities employ between 100 and 300 employees.

With all of this growth in Oklahoma City, it is a great time to invest in Real Estate! Contact us for any of your real estate needs. 
Posted by Chris Morris on February 23rd, 2017 12:29 PM
Oklahoma City is booming with new businesses, and a few new grocery stores are going to be introduced to the Oklahoma City area over the next year. 

Aldi, which as been a part of the Oklahoma City Grocery game for a few years is introducing a new location in the Mayfair Shopping Center at 50th & May. Aldi will be tearing down a section of the shopping center where CVS was previously located and building a new building. 

Winco Stores will also be a part of our city over the next year. They are introducing three new stores to the metro area. Locations include: Moore, Midwest City and NW Oklahoma City on Penn & Memorial.

There was also the recent addition of Trader Joe's to the Oklahoma City Metro. Trader Joe's is located in the Nichols Hills Plaza off of 63rd and May. Trader Joe's features affordable options for customers searching for healthy and convenient groceries. 

With the growth of our Metro area, there should be many more additions to our shopping choices in Oklahoma City over the next few years. 

For more information about the trends in the Real Estate market in Oklahoma City, feel free to contact us at The Virtual Real Estate Team! 
Posted by Chris Morris on February 13th, 2017 11:16 AM
Great new listing the Yukon School District. This home is located in the Miller's Gate community which is a gated community and also features a community park. Millers Gate is minutes away from the turnpike which has easy access to Oklahoma City and is also just down the street from downtown Yukon. Our listing at 3808 Ashley Terrace is a four bedroom home with wood floors in the Kitchen and Dining Room, and a spacious family room with a Fireplace. The Master Suite features a large bathroom and a walk-in closet. All three of the guest bedrooms are on the opposite side of the home from the Master Bedroom. There is also a large covered porch and backyard. For more information visit our Homes For Sale page or to schedule a showing email : okcrealtor7@gmail.com 
Posted by Chris Morris on February 9th, 2017 11:48 AM
Tucked away in NW Edmond, Griffin Park is a fantastic community with many amenities for the residents that have made it their home. 

Griffin Park is a community located just minutes from the Kilpatrick Turnpike, Quail Springs shopping corridor, Chisholm Creek and local schools. Griffin Park is located in the Edmond School District, which is one of the top school districts in the Oklahoma City Metro.

This community features newer homes from around 2000 to 3000 square feet that have been constructed from 2012 to now. There is also a neighborhood clubhouse and pool for the residents to enjoy. 

We have one home for sale in the community, that is located on a quiet cul-de-sac homesite. The home we have for sale features hardwood floors, a modern Kitchen and also an upstairs bonus room with a full bathroom. 

For more information on this community or the home we have for sale in Griffin Park, contact us today!




Posted by Chris Morris on February 6th, 2017 11:59 AM
I have been selling Oklahoma City real estate investments for over 26 years and it has been my pleasure to create wealth for so many people. I have many out of state investors and for the last 13 years that has represented the majority of my sales. I have always prided myself on finding builders who are willing to give investors a home that appraises over the purchase price but this is becoming more difficult all the time. Overall, the US has recovered from the mortgage meltdown of 2008 and even though Oklahoma City real estate maintained its stability and didn't meltdown, the bubble markets that did have come roaring back. This has created an even bigger demand for Oklahoma City rental homes because few markets possess affordable housing, low cost of living, and strong population growth, but we have and since 2008 building has been steady.

The first issue that is affecting affordability is land cost for development. Oklahoma City has put billions in infrastructure spending that did a great job of revitalizing downtown and other areas of commerce but little was spent on expanding utilities. Not only have land cost risen but developers are responsible for infrastructure spending for water and sewer, so lots we used to see at $25,000 may be $50,000 now so add that to the cost of a home. Oklahoma City and the surrounding suburbs have also increased fees for permits, inspection fees, and what is coming is what is called impact fees. You add to this the rising cost of materials like concrete, and labor cost going up and my job of putting new homes together becomes more difficult.

One thing we have done is work together, builders, developers, and me to purchase land through 2018 for development. We can control some cost there but not all. We are also working harder on subcontractor fees with a guarantee of full time employment without breaks if they will work some off cost and that helps too. We are also changing what we build by going to duplexes where we can put two rental properties on one lot that reduces per unit cost and more multi-family type construction, but back to single family which is a bedrock conservative real estate investment with the safest exit strategy upon sale.

Investors have lately been understanding this and buying up what I have to offer and I am down currently to one house to sell. However, I have been meeting with two builders specifically who are going to be able to deliver 22 lots for single family investment homes in top suburban school districts. These homes we hope will be priced from $160,000 to $175,000 and unfortunately building at $150,000 and below has almost been eliminated. We do have a strong rental pool for the above homes, and I should be receiving details like floor plans and standard features this week. 

If you are interested in investing in Oklahoma City real estate and want to get on our quick send list when these homes are available for sale, then please get in contact with me to either sign up or to ask for a consultation on investing. My email is joe@joepryor.com.

Posted by Joe Pryor on February 5th, 2017 3:28 PM
Every year my wife and I debate where our investing money should go, is it Oklahoma City real estate or is it the stock market. The simple answer is both since as self employed people we need to put money into tax deferred investments like stocks but increasingly we are putting more money into real estate and here's why:

If you make the right buy on a rental property it can generate $400 a month or more and if the property is going up just 3% per year in appreciation then seven years down the road your Oklahoma City rental property will show at least a 25% annualized return on that investment. Now look at your stock portfolio and first realize that you trust someone else to tell you what to invest in and the people running those companies or the mutual funds you have no control over. With a rental property it comes down to two people you need to find trustworthy, the investment REALTOR®, and the property manager. What this means is you have much more control on the destiny of your Oklahoma City real estate portfolio.

Now let's look at stocks as something that is dividend oriented. So now ask yourself about how much dividends you are getting on a $150,000 stock portfolio compared to real state. Also ask yourself what is the level of volatility on that portfolio going up or down? For us we go very conservative with lower returns so if we get 5% returns annually we are happy since to get greater yields you need to accept more risk. So real estate which is one of the most conservative investments when it has yields annually above 20%, is easily valued by professionals, and also the fact that everyone has to live somewhere, then that bricks and mortar investment becomes your best return. 

I am not here to tell you to put your eggs in one basket because that would be hypocritical since I don't do that but last year one real estate investments in dollars were 3 to 1 over stocks. Since the mortgage meltdown of 2007-08 real estate has reverted back to its basic principle of supply and demand determining pricing. No fluff, no breathe on a mirror and get a mortgage, but combined with low interest rates the timing for you can't be better. My partners in building and developing understand that this can't go on forever, rates will rise as well as the cost of building and developing, so they have secured land for building through 2019 so we are excited about the next three years.

For me, selling investment real estate in Oklahoma is all that i do, no listing appointments, no buyers inc are other than investors. Thirteen years ago I dropped everything but investments and focused all my trading and energy into that one thing. With my wife we have built a team that also now encompasses a property management company so that every part of your experience will have someone with a vested interest in your satisfaction. Selling you an Oklahoma City rental property is gratifying to us but even more gratifying is when we have built with you a level of trust that like an investor last week bought a new duplex after his last purchases 11 years ago. That is what makes this all worthwhile. To connect with us about building wealth for the future through investing in Oklahoma City real estate, please contact us at joe@joepryor.com.

Posted by Joe Pryor on January 31st, 2017 4:16 PM
If you are looking for a townhouse in the northwest Oklahoma City area, well we have a home for you! Great three bedroom townhome located close to the action in NW OKC. This home is an end unit townhome. Walk in to the large family room with vaulted ceilings that is open to the Dining Room and Kitchen. Downstairs there is also a Laundry room and Guest Bedroom with its own bathroom. Upstairs there is one additional Guest Bedroom and Master Bedroom. Tons of closet space and storage throughout this home. Property is close to the Turnpike, Lake Hefner Parkway, Quail Springs Mall and the new Chisholm Creek Shopping District. Townhouse is a proven rental property and can be leased for around $1,100 to $1,200 a month. Contact us for more details or to schedule a showing. There are photos and more information about this property on our Homes For Sale page. 
Posted by Chris Morris on January 31st, 2017 10:52 AM
  

There is no way to ignore the fact how the Northwest area of Oklahoma City is growing at a rapid pace. This growth is bringing many new businesses to the area. We are going to overview just a few of the new businesses that are coming to the NW Oklahoma City area.

 There are two new dining experiences making a debut in Northwest Oklahoma City. They include Pei Wei Asian diner located on Memorial and Meridian, just north of  Mercy Hospital. This space used to be a Panera Bread until they recently moved to a new building. Pei Wei features affordable Asian cuisine for dine in or carry out.  The second new restaurant coming to this area of town is Teds Escondidio, located in a new shopping center being built on 150th and Pennsylvania Avenue. Ted’s is a staple in the Oklahoma City area featuring Tex-Mex cuisine. 

Now don’t worry, if you are craving desert after dining at one of the new establishments in this area, there is a Andy’s Frozen Custards that is under construction just to the Northeast of Ted’s.

After indulging on all of this delicious food, make sure to stop by the new OK Cryo, located at Red Rock Fitness on Pennsylvania Avenue, just north of Memorial. OK Cryo features Cryotherapy which is a new form of recovery for athletes and also people that have chronic inflammation.  During cyrotherapy you spend a limited time (under 3 minutes) in a chamber that exposes your skin to -200 to – 300 degrees Fahrenheit.

 These new businesses are just a few reasons to check out the booming Northwest Oklahoma City area out for a new home. If this is an area of town you have been considering to call home, contact us today! 

Posted by Chris Morris on January 25th, 2017 7:19 PM
It is rare for me to push anyone into making a decision but the prediction for interest rates in the US is that rates will go above 5% this year for a 30 year fixed rate mortgage. It wasn't that long ago that rates for an Oklahoma City home purchase was below 4% for a 30 year loan, but we have sufficiently recovered from the 2008 recession that the federal reserve believes that inflation needs to be tamed. Longer term treasury bonds and mortgage backed securities are particularly sensitive to inflation so your affordability factor can be adversely affected. 

Just a 1% increase in rates depresses buyers in the market so homeowners can also be affected in that the affordability factor goes down and the value of their home with it. This means that on both the buyer side and the seller side there is a sense of urgency. I understand that some people will sit on the sidelines because of the uncertainty that comes with the unusual election we just had and the insecurity in n to knowing what a Trump presidency will do to the economy and yes, i get that. But the economy both in this nation and worldwide is much bigger that one person not matter the position and the recovery in the last eight years has been profound not only with the greatest eight years of job creation but also the increase we are now seeing in wages.

You would think as an investment specialist I would be happy that there would be fewer owner-occupant homes in Oklahoma City but you would be wrong. it is the owner-occupant that drives value in the market and appreciation is a strong part of the rise in the wealth of the investor portfolio. Neighborhoods are also more stable with a large percentage of owners living in the homes so everyone benefits. Oklahoma City real estate has been a rock ion stability in the last 16 years in contrast to the nation and i would hate to see that changed. If you are ready to step up to Oklahoma City home ownership then now is the time to do it. If you want to get the process started please contact us for a free and private consultation at joe@joepryor.com.
Posted by Joe Pryor on January 22nd, 2017 8:46 PM
Fantastic newer home in Edmond Schools. This home features an open concept family room, with wood floors and vaulted ceilings. White kitchen is a show stopper with subway tile backsplash. Great size Dining Room off of the Kitchen. Home also features two guest bedrooms on the opposite side of the home from the Master Suite. There is also an office off of the foyer. Large laundry room with storage is ideal. Large three car garage. Spacious Master Suite with great sized bathroom and Master Closet. Bonus room upstairs with a full bathroom. There is also new carpet in the stairwell and the bonus room. This home also features a sprinkler system and blinds have been installed throughout the home. 

Make sure to check out our Homes For Sale page for more information regarding this property!
Posted by Chris Morris on January 18th, 2017 11:09 AM
2016 was a great year for us with those who invested in Oklahoma City real estate for great prices and positive cash flow. 2017 will be even bigger due to the purchase of land at reasonable prices that should take us even to 2018. Going forward, affordable home prices in positive growth areas like Greater Oklahoma City will stay strong with the percentage of home owners staying static as a lower rate than historically typical. These are a few of what you can invest in of both residential and commercial real estate.

Edmond Duplexes: Edmond is the No. 1 city in Oklahoma for the highest household income and the highest number of college graduates over 25. It also have the highest median price of a home sale at around $300,000. So how about a duplex at $288,500? We have not been able to build investment property in Edmond for over 3 years so this great location at Santa Fe and 15th ST(NW 164th in OKC) is perfectly located with great amenities and schools around you.

Edmond Office Condos: At the same location for the Edmond Duplexes we are building 4 buildings out front that are triplexes and are for offices. This is perfect for an insurance agent, attorney, Doctor, or small energy concern. They are individually regaled and metered for utilities and the good news is you don't have to close until they are leased. FYI, commercial leases are typically at least for 5 years.

Tuscany Villa in Edmond: Again on our Edmond theme we have lots in the new section of Tuscany located off Edmond Rd and Coltrane. This is just 1.5 miles fro I-35 for the easiest access to Oklahoma City. We except the homes we are building to be from $160,000 to $175,000 way below the Edmond norm and we will start booking purchases in February with March construction starts. I am buying one myself for rental.

Chalk Hill duplexes: Another duplex community close to downtown Edmond and also close to the third largest University in Oklahoma is Chalk Hill. Only 11 duplexes will be available and prices aren't firm yet but our goal is for $250,000 total purchase price per duplex. I would never say that something is can't miss but this comes close.

2016 holdovers: We still have a few of the Surrey Hill gold tour duplexes in Yukon that can be purchased. These are $270,000. We also have two lots in a Yukon neighborhood for two single family homes below $150,000 and a few builders that have homes that are finished that they want to sell. 

Coming Soon: Later in the year I will introduce you to three more major projects we have coming up that we are also very strong on. Our goal in this era of rising prices of land, materials, and labor is to insure an acceptable return on investment that makes sense to you for income and wealth building. To book a private consult with me you can email me at joe@joepryor.com.
Posted by Joe Pryor on January 16th, 2017 1:43 PM
Oklahoma City is poised for a very good real estate market in 2017. The oil business is stable and with the price of oil going up it should mean some high paying jobs coming to the metro this year. That should help to shore up the high end market which has been lagging for the last two years. The lower prices range should be very balanced for buyer and seller in 2017, continuing the trend of the inventory of Oklahoma City area homes for sale going up like the 20% increase last year. This put control on appreciation so affordability should remain good for buyers which is also good for sellers because it brings more serious potential homeowners into the market.

Interest rates are a big question for 2017. The Fed raised rates at the end of the year and we also had what was called The Trump Bump that added the stock market and put a damper on the bond market as well as mortgage backed securities. Now the exact opposite has happened after the last press conference and rates are going down as is the stock market. We will see how this plays out this year with the Fed because a lack of confidence in the recovery can make them sit on their hands on rate increases until clear signs indicate inflation which we are not seeing at this time.

The continuing business development is also an encouraging sign. New stores with national recognition have come in and with the liquor law change on wine and beer this should bring in more. Office space is a hot item right now for both large spaces as well as office condos, and the purchase market for the office condos is strong. It is helpful when both residential and commercial real estate are both going in the same direction. We are also pleased to see the continued growth at and around Tinker Air Force Base which with the MAPS projects ongoing is enhancing the desirability of Oklahoma City for new companies coming in and existing companies here expanding like Boeing is doing.

Finally, the uncertainty around the state government and budget deficits have to be solved. With another shortfall governments services will see a further cut and public employment has suffered more than any other sector. The rise in revenues from energy will probably take care of 1/3rd of the deficit but more has to be done where education and road construction do not suffer. Judging from what I am seeing so far on real estate activity we can overcome the state issue and Oklahoma City itself is strong at the government level we are somewhat an island in Oklahoma that thrives despite what is happening around it. When February comes around I will give you the first update on sales to see if it confirms what I am seeing from my own experience.
Posted by Joe Pryor on January 14th, 2017 3:53 PM
Looking for an investment property in Oklahoma City?

We have two great homes for sale, both located on the same street! You could purchase one or even both. 

These homes are located in the Wilshire Boulevard community, nestled between Lake Hefner and Nichols Hills. Both of the homes have previously been rental properties, so there is a proven rental history.

For more information or photos, contact us. Also, feel free to check out these properties on our homes for sale page. 

The addresses are 3016 Elmwood and 3028 Elmwood. 
Posted by Chris Morris on November 21st, 2016 2:15 PM
Beautiful new construction in Moore. You cannot beat the location of this home. Easy highway access and close to all of the shops and restaurants. Walking into this home you are greeted with a large living area that is open to the modern Kitchen and Dining room. Good size Master Suite with walk-in closet. Guest bedrooms are all on the opposite side of the home from the Master Suite. This home was built by Timbercraft Homes of Oklahoma City. Visit our Homes for Sale page for more info, and contact us today for a private showing. 
Posted by Chris Morris on November 2nd, 2016 11:06 AM
Check out one of our newest listings, 616 Eastview in Yukon Oklahoma! 

Fantastic home in Yukon Schools. New carpet and paint throughout. There are also six new windows that are in the process of being installed. This home is in a fantastic location, close to schools, shopping and highway access. Walk in the door to the large living area with Fireplace and built-in bookshelves. Kitchen is open to dining area. Covered back porch is great for outdoor time. Split plan with guest bedrooms on the south side of the home. Master Suite is on the north side of the home with a large bathroom and giant walk-in closet.

More information and photos on our Homes For Sale page. Contact us today for your private showing!
Posted by Chris Morris on October 15th, 2016 12:20 PM
The normal wisdom for buying Oklahoma City real estate or putting your house on the market is wait until Spring or Summer. I disagree with the assumption that this is the way it always is and I would like to give you my opinion based on watching the 4th quarter real state sales for the last 27 years of my Oklahoma City real estate career.

First, it is all about the inventory of homes in relationship to buyers. Right now inventory is lower than it would be for Spring or Summer so with fewer homes to choose from it is an equalizer. Of course there are typically more buyers in the warmer months but we have seen a 20% rise in homes for sale in Oklahoma City this year during those periods. This means that buyers have more choice, pricing is even more critical, and the advantage goes to the buyer. This is why we like listing homes October on because we know we have a more captive audience and that leads to the second factor that an make the 4th quarter great for sellers as well as buyers, interest rates.

At the last Fed meeting they sent the strongest signal yet that it is time to raise rates. The economy is picking up, job creation is strong, and we starting to see wages on the rise. Add to this that oil has passed the critical resistance point of $50 a barrel which leads to higher inflation also even though it is not core inflation. However, The Fed said they won't consider it until the December meeting. They sent a signal to home buyers that rates will increase on mortgages, not just short term rates. This is where Oklahoma City home buyers get off the fence and start seriously looking instead of waiting until next year. This is especially true for first time buyers who would be priced out of many homes with a .5% to 1% interest rate hike, so it increases motivation.

I have also noticed that younger people under 35 don't go along with "conventional wisdom" that may be a leftover from their parents time as first time buyers. The younger first time home buyer is also more likely to stay put with the job that they have because unlike Gen X there are more of them than their are jobs so stability is baked into the economy for them. So young combine this buyers belief that anytime is a good time to buy with the staying put in one place and add in low rates that are about to rise and you have the perfect storm for Oklahoma City real estate sales. There may be people who still doubt the Fed because after all they have raised rates only one in the last seven years, but that was from a deep recession that was close to a depression, so they used every arrow in their economic quiver, and now their work is done, there are not arrows to shoot and no targets to hit.

Personally, I am expecting my 4th quarter to be as strong as the other three and no I don't work any harder now than earlier in the year, but I do pay attention, follow market stats, and analyze supply and demand, a basic economic principle. What I am seeing is that by December buyers will have shown they are off the fence and want to get an interest rate lock before it rises. This should make more happy buyers as well as sellers. Trust me, I have seen it before and we are about to see it again. if our Oklahoma City real estate team can help you in buying or selling a personal residence, or if you would like to get started on investing in real estate, please email me at joe@joepryor.com.
Posted by Joe Pryor on October 10th, 2016 2:40 PM
On October 7th 2016 oil hit $50 a barrel. This of course is still off the highs that went above $100 a barrel, but way off the lows of below $30 a barrel. Despite the $30 a barrel days, the Oklahoma City economy was diversified enough to not experience the economic meltdown that we encountered in 1982. Without question it affected tax revenues and caused a slight uptick in unemployment, but with futures expected to be $53 a barrel this is great regional news for states like Oklahoma and Texas with larger reserves of oil and natural gas in shale.

You should also understand that unlike the wildcatter years when you could be a clothing salesman one day and an oil millionaire on paper the next, this market is now primarily corporate and that has made a big difference. When we take companies like Continental Resources and Devon Energy we are talking about companies not only possessing large gas reserves, we are dealing with companies that own the land they drill on rather than leasing, so profits for Devon at $44 a barrel yields a 40% return on investment and I will take that level of profit every time.

When extraction cost can be as low as $14 a barrel and the high cost would be $30 a barrel, even with the smaller more leveraged companies the cash return at $40 a barrel is 10%, still acceptable to any investor. This has enabled those smaller companies that had declared Chapter 11 in the bad days to emerge from bankruptcy stronger and with lower debt burdens. When you combine this with 2016 averaging 192,000 jobs a month and the beginning of wage increases, the economy is starting to strengthen and that means more spending and that requires more energy use. 

Will we return to the old days of $100 a barrel plus? Maybe sometime down the line but I have seen a map of oil in shales in the continental US and we are truly energy independent for awhile and that should keep prices in check. As much as i would like maximum oil revenues for Oklahoma, there is always the negative affect of inflation so $65 a barrel would be fine with us. All in all this is good news for Oklahoma and especially Oklahoma City real estate. The higher end priced homes will have fewer days on the market, and the increase in the hiring in the energy servicing sector will take the less than $200,000 housing market to new heights.

This makes me bullish for 2017. We should expect higher levels of properties for sale and consistency so, an increase on the commercial side, an easier state budget to balance, and a total bonus for a market that over the last 25 years has striven mightily to create a strong and diversified economy and now can look as the energy sector as a cherry on top of the sundae.
Posted by Joe Pryor on October 7th, 2016 1:04 PM
Make sure to check out our new listing on our homes for sale page! 

Fantastic home located in Edmond Schools. This home features new carpet and paint throughout. Open concept living area, with large family room. Kitchen and dining room boast great space for entertaining. Two guest bedrooms are on opposite side of the home from Master Suite. One guest bedroom is located by the Master Suite, perfect for a nursery or a study. Master Suite features tray ceiling and large bathroom with separate tub and shower. Home also features a sprinkler system. Walking distance to the community clubhouse and pool. You will love the location of the community, minutes from highway access, schools and the Quail Springs area.

Posted in:Homes For Sale and tagged: EdmondOklahomaHomes
Posted by Chris Morris on October 3rd, 2016 1:58 PM
After 2008 the United States as much of the world came close to financial armageddon. In the real estate meltdown, some areas like around Orland Florida lost as much 80% of its value. Atlanta saw massive foreclosures on land and subdivisions and many wondered how long it was going to take to the economy and especially housing to recover. Through stimulation through the government and especially the Federal Reserve the time was cut shorter for the recession than the major economist expected and values started to rise again.

One unintended consequence in the recovery that Wall Street had much to do with was then relieved by Wall Street by buying massive amounts of single family housing mostly in Florida, Georgia, Arizona, and Nevada but not limited to that. Realizing the cash in king in deep recessions and working with the banks they figured real estate was safer than the stock market and they went on a buying spree. As much as I would like to find fault in this and it does have some ethical questions attached to it, buy buying our foreclosed property in bulk, they took the downward pressure in real estate values out of the marketplace and the housing recovery was then 6 years ahead of schedule.

Now there are some economist and predictors saying that we have another bubble brewing but I don't think so. I can see where they get that idea when that same orlando market that was so inflated before 2007-08 came roaring back to bubble levels. Phoenix, Atlanta, and Las Vegas followed suit so Florida which is a cyclical market that goes up and down were joined by areas not known for wild swings in pricing. Part of this was the low inventory that was caused not just by corporate foreclosure buying, but also by many Americans deeply hurt by the recession that could not put their homes on the market even if they wanted to because of high debt and not enough equity. This caused multiple offer bidding on many homes in a desperate attempt to find something to buy. Supply and Demand are a constant in the real estate market so this caused prices to shot up even higher.

So is there a bubble about to burst? You have low inventory, multiple bids shooting up prices, artificially low rates caused by Fed policy, and an economy that has recovered slowly and is not showing much wage inflation. Couple this with economic instability abroad and I can see why people think this way. However, this to me is not a bubble. The bubble was caused by a cynical and fraudulent manipulation of an asset class, in this case real estate, in order for Wall Street and banks to make higher profits. There was not control on lending so breathing into a mirror got you the loan you wanted. The crazy packaging and repackaging of mortgages artificially keep this going into the bubble finally burst in the biggest meltdown since the great depression. Sounds like some think this is happening again.

But there are many differences since pre-2008 that make me think this is not a bubble. We have put tight controls and some say too tight, on mortgage lending. We have put even tighter controls on appraisals so as not to enable a rational but not real value on a property. The Federal Government set up the CFPB, The Consumer Financial Protection Bureau to monitor and check bad actors and fraudulent schemes, and the rest of the economy is starting to show signs of real life with not only massive job creation but also higher wages. Yes prices have gone up quite a bit but now wages can start keeping up and inflation is still low so rates today really help the affordability index. So if it is not a bubble, then what may happen to cause values to drop? 

First of all real estate is local and hyper-local so not all cities and towns move in lockstep. For instance Oklahoma City maintained its values after 2008 and developers did not go out of business so we did not experience these huge property value swings. If you bought in Miami Florida say two years ago there may be some dark clouds bringing rain. In so cities the rise in values is like a scuba diver coming up to fast and getting a case of the bends where some decompression is required.So in bubble cities throughout the US we may see some values dropping but the market conditions do not exist today that existed in 2008 and before. We are seeing more cities where the number of homes for sale is rising and in Oklahoma City this is about 20% up over last year. Rising interest rates are around the corner probably starting in December 2016 and this hurts affordability and takes many out of the market. We learned the hard way after 2008 that market cycles will always be with us and what goes up can come down and will come down. I would be careful about the timing of a purchase in more volatile market conditions, but in cities like Oklahoma City, Kansas City,Des Moines, or Omaha for instance, steady pricing all gains are the norm so small losses in value would also be consistent. Could there be a 10% reset in some areas, absolutely, but that is not the 40% to 80% off sale that occurred in the recession.

Bottom line, do your real estate homework, find a knowledgable and ethical REALTOR® to give you the right advice, and cut down on risk taking. Looking forward I do feel optimistic about the future of housing and if there is a bubble it will be in another asset class for Wall Street to exploit. History gives us that lesson over and over again.
Posted by Joe Pryor on October 1st, 2016 2:12 PM
Miller's Gate is located just off of Highway 66 in the Yukon School District. Miller's Gate is a gated community featuring homes priced under $215,000 that were built in the late 90's and early 2000's. The community also features a park, perfect for the neighborhood kids. The community is also located close to shopping, schools and has easy highway access to travel to Downtown or NW OKC. 

Make sure to check out our listing we have in this fantastic community on our featured homes page. 3808 Ashley Terrace is a four bedroom home with a perfect layout for family living, priced at $179,000. 
Posted by Chris Morris on September 26th, 2016 10:24 AM
Now that the Federal Reserve has again passed on a rise in interest rates it is time to evaluate how we should predict the Oklahoma City real estate market for the last three months of 2016. Since Oklahoma City is one of the easiest markets to make predictions about the question is why is that? Oklahoma City real estate exist in a linear type of market. Unlike volatile markets like Florida we do not see rapid change. Yes, we do not have double digit appreciation, and in my 27 years of real estate I have not seen a 10% or more increase, but we also don't see big downturns and losses. However, specific market segments can have a more rapid change and when yo start thinking about recent oil price drops you can get the picture. So let's dive into the data and see what we find.

This year has seen a rise in the median price sale of a home, but at the same time we have seen a drop in overall sales, and much of that is due to an 8% increase in the inventory of homes for sale and the perspective of buyers that they don't have to be in a hurry. This puts an even greater emphasis on pricing your Oklahoma City home properly if you want to get it under contract and kudos to the Oklahoma City REALTORS® because days on market have shortened, so good advice is not only being given, it is being accepted by the home seller.

The energy industry is making a bit of a comeback with oil prices in the $40s, but not enough to rescue the luxury home market. This goes especially for new construction that is over $500,000. It wouldn't surprise me if we see some bank take backs on some builder homes that have been on the market over one year. We would need $65 a barrel to rescue that market but that doesn't look like it will happen soon enough. The good news is that the under $250,000 market is still strong even though the absorption rate is a bit higher at over 4 months to sell existing inventory, but that is still biased toward the seller, so the average discount on a home is not exceeding 3%.

The Fed is now talking about rising rates in December and probably if that happens it will be small like 1/4 point, but the Fed has signaled this many times before and it is like the little boy who cried wolf too many times and no one believes them. I do believe them this time because we are starting to see a rise in wages which signals a rise in inflation. With rates staying down in the last three months this should be a boost to home sales especially since people might start to believe that rates are going up so let's not wait until Spring 2017. The end result will be a drop in inventory and the supply and demand ratio will start being further biased towards the seller in the affordable price ranges. This coupled with a continued loosening of money in the mortgage industry signals a great holiday selling season.

Looking at the overall Oklahoma City market condition of 2016, this year signaled a return to normal, and that normal is a typical 3% appreciation rate. The previous two years were higher because of extremely low inventories and that condition may be coming back to increase 2017 to a 4% to 5% rate. This is being helped by the lack of new home starts especially in affordable price ranges, and the tightening of local banks giving out money for new starts in the higher price ranges. The other issue is the rising cost of land where we do see inflation and land owners thinking that what they have is more valuable than it is. Combine this with slow infrastructure spending on the cities part causing the developer to create water and sewer connections and this will put added emphasis on the buying of existing homes.

That's all I have so say at this time but at the end of October we will be posting about if this all comes true by looking at the stats on new and existing Oklahoma City homes sales and how much inventory will be listed in the last quarter. Stay tuned for the news and as I said before we may be a dull and under the radar market that does not demand national news coverage, but for me I think that is great because we can buy or sell with a great degree of confidence and a lot of similar data to support our actions. For more information on the Oklahoma City housing market, please contact me at joe@joepryor.com.

Posted by Joe Pryor on September 24th, 2016 1:49 PM

Do you ever dream of going back in time, to where life was simpler and you could spend time sitting on your large front porch, having a glass of wine and talking to your neighbors? Well, if you have you need to go visit the Arbor Creek addition in Edmond, this neighborhood is absolutely stunning.

Arbor Creek features Craftsman Bungalow style homes from both McCaleb and McGregor Homes. Both builders have their own little flair and different style characteristics that set them apart from each other.

This community is idyllic with winding roads, old growth trees and just all of the cute little bungalows with their historic paint colors and large front porches.

If you would like to tour the Arbor Creek addition, or have any questions about purchasing or selling real estate in Edmond, please let me know! Okcrealtor7@gmail.com

Posted by Chris Morris on September 19th, 2016 11:56 AM

Fall is finally here, so it is time to start getting ready for all of the fun fall festivities. Football games, Halloween and of course, fall décor.

Fall is a busy time of year for everyone, so having your home ready for guests is necessary. Here are some quick and easy tips for having your home ready for entertaining friends and family this fall:

  1. Clean out all of the flowerbeds of spring and summer flowers that are starting to look a little sad. Now that the cooler weather is finally upon us, replace your current flowers that aren’t able to handle the chillier temperatures with pansies and mums for splashes of color throughout your flowerbed and in your pots.
  2. Create or purchase a new fall or Halloween themed wreath for the front door. Wreaths are easy to make, just check out Pinterest. There are tons of themes that go with fall from Football and Basketball team theme wreaths, to just a simple Fall or Halloween wreath.
  3. Pumpkins and a hay bale or two on the front porch or in the front flower bed are also a very simple way to add some pizazz to your home and give it some fall curb appeal.
  4. Inside your home, you don’t have to go over the top with decorating for fall to make your home feel cozy and have that “fall feeling” Some easy things we recommend are getting new fall scents in the home. Little pumpkins in glass vases are also a very easy touch that you can put on the mantle or on the bar in the Kitchen. Your local craft store will also have some small Fall and Halloween décor, usually on sale throughout this season to add some fun and whimsy to your home.

I hope these few tips help with adding some whimsy and feeling of coziness throughout your home this fall!

Posted in:Interior Decorating and tagged: FallDecorating
Posted by Chris Morris on September 14th, 2016 11:15 AM

Edmond is one of Oklahoma City’s most booming suburbs. With amazing schools, parks and shopping, Edmond has a lot to offer. When moving to Edmond, or even just moving to another new home in neighborhood, there are many neighborhoods to choose from.

The Trails : The Trails is a developed addition with homes ranging from around 1600 sq. ft to over 3000 sq. ft. The addition was started in the 70’s and finished in the early 90’s. This neighborhood has creek side and waterfront home sites, old growth trees and very well cared for homes. The Trails features a neighborhood pool, two parks and a pond. Located in west Edmond close to shopping and schools, this is a perfect family neighborhood.

Valencia: Valencia is a large planned community by Edmond builder, Ideal Homes. With starter homes in the 130’s to larger custom homes in the high 300’s there are many different homes to choose from. These neighborhoods is still under construction, so there is the option to custom build your dream home, or choose from many designer pre-existing homes. With walking trails, parks, splash parks and sports courts, there is something for everyone in the family to do. This addition is located in Edmond and Deer Creek schools.

Belmont Farms: Belmont Farms is one of north Edmond’s premier communities. With homes ranging from the mid 200’s to the upper 400’s, there is sure to be a beautiful home just perfect for you and your growing family. Belmont Farms is located off of Coffee Creek and Kelly, just next to one of Edmond’s best elementary schools, Cross Timbers. Belmont Farms features wooded and lake front home sites, walking trails and a community pool and park. If you are looking for a beautiful Executive home in a great school district, Belmont Farms is the community for you!

Posted by Chris Morris on September 8th, 2016 2:11 PM
Today, August 21st, is not one week past the start of the Fall school semester for Oklahoma City suburbs, and the Oklahoma City schools even had an earlier start. The start of school is an important deadline, so if it hasn't sold by now and you are in a school driven market, it is time to make some adjustments to your home. No matter how great the REALTOR® marketing is, there are factors like these deadlines that are important for you to consider if you really have to move, so let's explore the three big ones:

Pricing: I thought about saving the most important for last but pricing is the single most important factor of these three although all can be related to you home staying on the market. The question is, how much equity do you need to retain to make your move? Remember that if you are in a lower price range first time home buyer market, then you are going to get a request to pay much of the buyers closing cost so that still has to be factored in. If you just can't afford it you will probably need to take you home off the market and wait for the value to rise. If you have to move, just accept that you are not going to get what you wanted when you first listed the home.

Location: Certain factors may be working against you that are big negatives. Normally these are backing up to a busy street, high power lines next to you, and unusual lot layout, oil field equipment, and more that can affect the desirability. This one is hard to deal with because most if not all of this won't change, but it needs to be factored into what the home is worth. Remember that the ultimate value of your home is not what is set by an appraiser, it is set by a buyer and seller agreeing on a contract price. The appraiser just becomes a protection for the lender and buyer if it is over market value. This is where the pricing factor becomes involved because if you home is equal to another that has a superior location, that home will be chosen. Your only hope is that the neighborhood is so desirable that if it is the only one of its kind available it may sell, but pricing will still be an issue. 

Condition of property: This is something that you can actually do to help you ability to sell. Look at the house feedback and see what the negatives are like do you need better landscaping, or new carpet, or replacement to fixtures, this can up desirability. If your home is the only one without granite counter tops and that is expected in your price range then by all means put them in. A fresh paint job is always helpful, and decluttering you home to open it up can be a plus. I would suggest to have your Oklahoma City REALTOR® show you a breakdown of competing homes to see what your up against. Once more, if you are in a first time buyer price range remember that most of these young people have no or very little money so beyond paying some of their closing cost, if they can move into a freshly updated home this to them means it is worth paying extra and many of these repairs or upgrades will get you at least if not more what you put into you home improvements.

An honest REALTOR®: To some agents in this business just to have a listing is extremely important to become a source of advertising, but what you need is one that speaks truth about your home and is not afraid to tell you. I can say from experience that when I list an Oklahoma City home for sale and an owner resents my feedback or recommendations, I may just release the listing. This is my 27th year being a REALTOR® with over 2500 homes sold. I say this not to just try to get a listing from you but to let you know that experience counts. This doesn't mean you should never use a new Oklahoma City real estate agent, but the really good up and comers usually has a mentor who is experienced and can advise them on any questions. It does not serve Oklahoma well or for that matter my industry if you have a bad experience or an unsuccessful sale. Just remember that we cannot with the force of personality sell your home. All of these factors relate and play into each other, and as we head to September and the 4th quarter we need to be open and honest with each other because that is the way great partnerships find success. If we can help, please email me at joe@joepryor.com.
Posted by Joe Pryor on August 21st, 2016 2:00 PM
Today, August 21st, is not one week past the start of the Fall school semester for Oklahoma City suburbs, and the Oklahoma City schools even had an earlier start. The start of school is an important deadline, so if it hasn't sold by now and you are in a school driven market, it is time to make some adjustments to your home. No matter how great the REALTOR® marketing is, there are factors like these deadlines that are important for you to consider if you really have to move, so let's explore the three big ones:

Pricing: I thought about saving the most important for last but pricing is the single most important factor of these three although all can be related to you home staying on the market. The question is, how much equity do you need to retain to make your move? Remember that if you are in a lower price range first time home buyer market, then you are going to get a request to pay much of the buyers closing cost so that still has to be factored in. If you just can't afford it you will probably need to take you home off the market and wait for the value to rise. If you have to move, just accept that you are not going to get what you wanted when you first listed the home.

Location: Certain factors may be working against you that are big negatives. Normally these are backing up to a busy street, high power lines next to you, and unusual lot layout, oil field equipment, and more that can affect the desirability. This one is hard to deal with because most if not all of this won't change, but it needs to be factored into what the home is worth. Remember that the ultimate value of your home is not what is set by an appraiser, it is set by a buyer and seller agreeing on a contract price. The appraiser just becomes a protection for the lender and buyer if it is over market value. This is where the pricing factor becomes involved because if you home is equal to another that has a superior location, that home will be chosen. Your only hope is that the neighborhood is so desirable that if it is the only one of its kind available it may sell, but pricing will still be an issue. 

Condition of property: This is something that you can actually do to help you ability to sell. Look at the house feedback and see what the negatives are like do you need better landscaping, or new carpet, or replacement to fixtures, this can up desirability. If your home is the only one without granite counter tops and that is expected in your price range then by all means put them in. A fresh paint job is always helpful, and decluttering you home to open it up can be a plus. I would suggest to have your Oklahoma City REALTOR® show you a breakdown of competing homes to see what your up against. Once more, if you are in a first time buyer price range remember that most of these young people have no or very little money so beyond paying some of their closing cost, if they can move into a freshly updated home this to them means it is worth paying extra and many of these repairs or upgrades will get you at least if not more what you put into you home improvements.

An honest REALTOR®: To some agents in this business just to have a listing is extremely important to become a source of advertising, but what you need is one that speaks truth about your home and is not afraid to tell you. I can say from experience that when I list an Oklahoma City home for sale and an owner resents my feedback or recommendations, I may just release the listing. This is my 27th year being a REALTOR® with over 2500 homes sold. I say this not to just try to get a listing from you but to let you know that experience counts. This doesn't mean you should never use a new Oklahoma City real estate agent, but the really good up and comers usually has a mentor who is experienced and can advise them on any questions. It does not serve Oklahoma well or for that matter my industry if you have a bad experience or an unsuccessful sale. Just remember that we cannot with the force of personality sell your home. All of these factors relate and play into each other, and as we head to September and the 4th quarter we need to be open and honest with each other because that is the way great partnerships find success. If we can help, please email me at joe@joepryor.com.
Posted by Joe Pryor on August 21st, 2016 2:00 PM
Today, August 21st, is not one week past the start of the Fall school semester for Oklahoma City suburbs, and the Oklahoma City schools even had an earlier start. The start of school is an important deadline, so if it hasn't sold by now and you are in a school driven market, it is time to make some adjustments to your home. No matter how great the REALTOR® marketing is, there are factors like these deadlines that are important for you to consider if you really have to move, so let's explore the three big ones:

Pricing: I thought about saving the most important for last but pricing is the single most important factor of these three although all can be related to you home staying on the market. The question is, how much equity do you need to retain to make your move? Remember that if you are in a lower price range first time home buyer market, then you are going to get a request to pay much of the buyers closing cost so that still has to be factored in. If you just can't afford it you will probably need to take you home off the market and wait for the value to rise. If you have to move, just accept that you are not going to get what you wanted when you first listed the home.

Location: Certain factors may be working against you that are big negatives. Normally these are backing up to a busy street, high power lines next to you, and unusual lot layout, oil field equipment, and more that can affect the desirability. This one is hard to deal with because most if not all of this won't change, but it needs to be factored into what the home is worth. Remember that the ultimate value of your home is not what is set by an appraiser, it is set by a buyer and seller agreeing on a contract price. The appraiser just becomes a protection for the lender and buyer if it is over market value. This is where the pricing factor becomes involved because if you home is equal to another that has a superior location, that home will be chosen. Your only hope is that the neighborhood is so desirable that if it is the only one of its kind available it may sell, but pricing will still be an issue. 

Condition of property: This is something that you can actually do to help you ability to sell. Look at the house feedback and see what the negatives are like do you need better landscaping, or new carpet, or replacement to fixtures, this can up desirability. If your home is the only one without granite counter tops and that is expected in your price range then by all means put them in. A fresh paint job is always helpful, and decluttering you home to open it up can be a plus. I would suggest to have your Oklahoma City REALTOR® show you a breakdown of competing homes to see what your up against. Once more, if you are in a first time buyer price range remember that most of these young people have no or very little money so beyond paying some of their closing cost, if they can move into a freshly updated home this to them means it is worth paying extra and many of these repairs or upgrades will get you at least if not more what you put into you home improvements.

An honest REALTOR®: To some agents in this business just to have a listing is extremely important to become a source of advertising, but what you need is one that speaks truth about your home and is not afraid to tell you. I can say from experience that when I list an Oklahoma City home for sale and an owner resents my feedback or recommendations, I may just release the listing. This is my 27th year being a REALTOR® with over 2500 homes sold. I say this not to just try to get a listing from you but to let you know that experience counts. This doesn't mean you should never use a new Oklahoma City real estate agent, but the really good up and comers usually has a mentor who is experienced and can advise them on any questions. It does not serve Oklahoma well or for that matter my industry if you have a bad experience or an unsuccessful sale. Just remember that we cannot with the force of personality sell your home. All of these factors relate and play into each other, and as we head to September and the 4th quarter we need to be open and honest with each other because that is the way great partnerships find success. If we can help, please email me at joe@joepryor.com.
Posted by Joe Pryor on August 21st, 2016 1:59 PM
One of the successes for US real estate since 2008 has been on the investment side. While home ownership percentage is going down, rents are rising in most of the major cities, including Oklahoma City. This is a trend that should continue as the millennial generation prefers to rent, and many of the distressed homeowners who lost there home have not come back into the buying market. If you are a first time real estate investor this becomes very tempting, and visions of riches have come back, and of course so have the promoters of get rich quick seminars. I have worked with investors now for 26 years and now it is all that I do. I work with many first tome investors and I spend a lot of time with them because I want them to continue to buy in Oklahoma City, and the only way to do that is to be conservative to start and follow some time honored advice to keep you from losing your shirt with that "can't lose" proposition. Here is some advice I give first time investors to help avoid that.

Have a reserve fund: The worst thing you can do is to go all in and hope for the best. The more you have in reserve, the better, but at least have 3 months of reserves and I recommend 6 months. Remember that homes sometimes take awhile to rent, and if you have 60 days of vacancy which we haven't experienced here in a long time but it can happen, then you are still paying for the mortgage, utilities, and upkeep. Another suggestion about your reserve fund is to take your positive cash flow and put it in the fund. Besides drawing some interest that helps your internal rate of return, it also sets you up for the next purchase, so when that great deal comes along you are ready. This goes triple for the fix and flip crowd. I just saw a fix and flip first timer lose about $60,000 in my neighborhood and that hurts.

Jumping in too quickly: Don't let that if you don't buy today you are missing a great deal suck you in. You should never have your investment agent pressure you to move too quickly. It also makes no sense to buy when you have insufficient knowledge about what you are doing. Warren Buffett said it best, "Invest in what you know". so make sure your agent gives you the education you need. They need to define the return on investment terms, how they are calculated, and they need to educate you on their market down to the neighborhood. I prefer to spend some time upfront before anyone makes the leap because then you can become my client for life. It's Ok to hesitate until you have some confidence and the agent has shared detailed analysis and metrics on what they are recommending.

Cheap properties often aren't the best buy: It is tempting to buy two $70,000 houses versus one $140,000 house but there are some warnings to consider. First, very often those cheaper properties are in "come back" neighborhoods that may never come back. You also need to ask for crime statistics about where you are buying. How long is the historical data on rents and vacancy? What kind of renter am I getting? My usual advice in Oklahoma City is to go with people with good jobs, good credit scores, and this usually starts at around $1000 a month in rent. I have been able to sell new or newer homes as low as $126,000 that have all the rent ready items, it isn't easy to find them but they are newer floor plans, higher energy efficiency so the renter gets lower bills, and less maintenance oriented. Typically the $70,000 house is 40 years old or older and that means more maintenance unless you do what I did on a $85,000 home which was to put $40,000 into it. Remember you are buying for long term gains and you want renters to treat it like they owned it.

Get a good property manager: Most people do not know how to do property management, nor do they have access to credit and criminal history backgrounds. I know it cost you money to hire a property manager, but in the long run they can save you first on knowing how to vet a good tenant and second, they become the buffer to handle issues that arise. Always remember you are doing this for passive income which means you have a life so a property manager has the resources like contractors to do the work and a good one has 24 hour access for emergencies. Taking great care of a tenant is a good way to keep a good tenant. I am blessed to have two outstanding property management companies and believe me the really good ones are in short supply. This is why so many out of state investors have confidence in out overall team and continue to buy.

One is not enough: No I am not suggesting you start off with 5 properties but I believe you should be focused on that many, or more if it makes sense and you have the money to do it. I am also not suggesting to put all your money into real estate because diversity is good and it is something I personally do. But if you have one property and it goes vacant, you have a 100% vacancy rate. If you have five properties that have positive cash flow and there is one vacant then not only is that a 20% vacancy rate at that moment, the positive cash flow from the four can keep you in the black. 

In conclusion: This is by no means a complete list of concerns you should have if you are wanting to become a first time Oklahoma City property investor, but it is a good start. Very often I do regular phone calls and email chains with new folks to give you the information, the statistics, and hopefully the confidence to work with us. We are at your service and we look forward to helping you build wealth through investing in Oklahoma City real estate. You can reach me at joe@joepryor.com.


Posted by Joe Pryor on August 16th, 2016 12:56 PM
Located in the outstanding Edmond School District, Brenton Hills is located close to highways, schools and shopping. Brenton Hills has homes ranging from the low 300's to low 600's. Homes range in size from the upper 2000's in square footage to close to 6000 sq. ft. Most homes were built in the 1990's to early 2000's. They are great for families that need larger homes at a more affordable price per square foot. The community features rolling hills and a beautiful pond at the front of the main entrance. There are even some homes in the community that back up to wooded areas which offer a lot of privacy. 

For more information on this community or any other communities in the metro, contact us. We would love to help!
Posted by Chris Morris on August 15th, 2016 12:04 PM

Recent home ownership statistics are showing that in the US only 63% of Americans own the homes they’re in, the rest rent. Before 2008, home ownership had soared to almost 69% so what are the reasons for this drop? Does this stat apply to Oklahoma City? Also, what are the implications for the US economy if this doesn’t change? First let’s look at what have cause the dip:

 

Low Inventory: Most major markets have fewer homes available than anytime in the last 16 years. Because of the low supply, housing prices have in some cases skyrocketed because of multiple bidding, and even in linear markets like Oklahoma City we have seen our normal appreciation double in 2014-2015. Even with low interest rates, affordability in many markets have put homes out of reach of the first time buyer, and rents have gone up significantly. Since it is more expensive to rent that to buy, this isn’t helping people save for home ownership also.

 

Millennial Student Loans: The cost of education keeps soaring as does student loan debt. This has caused home ownership delays and even family formation delays because it kills the ability to qualify for even an FHA loan. This is now our largest generation but also the one with the lowest home ownership percentage. Recently NAR was able to lobby to get the minimum payment reduced and let’s hope this helps because 80% of this generation wants to buy a home.

 

Lack of New Construction: Even though new home construction in the US is up 30% over last year, we are still about 500,000 homes per year behind demand. Added to this is the lack of affordable homes being built and this does extend into the Oklahoma City market. New home construction has not recovered from the housing recession, and banks have been tight on giving money for construction.

Some folks having not recovered from 2008: Millions of homes were lost to foreclosure after 2007, and many more went the short sale route, so these “boomerang buyers” have not been able to save enough and may still be working on their credit rating. The job recovery has also been slower than hoped for and we are just now seeing wages increase, so having faith in the economy and feeling confident enough to buy is now starting to creep back in. The hope is that we will see wages keep going up to help those who want a home, afford a home.

 

What about Oklahoma City? I have written here before that Oklahoma City escaped the worst of the meltdown and maintained stability in housing and the economy. This doesn’t mean we weren’t affected but we had less to make up for than just about anywhere. We have also been blessed with affordability that goes along with the low interest rates we currently enjoy. I am not certain as to what our home ownership numbers are, but my educated guess is as high as 65%. Even in new construction, homes under $200,000 are abundantly available to first and second time homebuyers and this bodes well for the future. Yes, energy has had an impact but again, this is the best energy downturn we will ever see and it hasn’t stopped home sales. Also in out favor, the number of homes for sale has risen this year for the first time in years and although this creates less appreciation, it does bring more people into the process. Don’t forget that the more homes sell, the more employment it creates. The more homes sell it also helps everything associated with home ownership from furniture, to contracting, to gardening purchases. It is still a concern for the national economy and home ownership needs to rise, but in Oklahoma City, we are doing our part and doing it well.

 

 

 

Posted by Joe Pryor on August 11th, 2016 10:03 PM

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