In 2016, Oklahoma City homebuyers were granted historically-low interest rates. The result was a basically flat market in comparison to 2015, with one exception. Days on the market dropped. In 2017, Oklahoma City buyers expected to lose their buyer’s market advantage due to increased interest rates, further recovery from the gas and oil downturn, and continued real estate market stability.
However, it remained a buyer’s market during the first quarter of 2017, as housing inventory fell. Sales remained the same and pending sales rose. According to the Oklahoma City Metro Association of Realtors, the median price of a home in Oklahoma City’s metro area went up 1.9 percent to $165,000 in Q1 2017.
By the end of March 2017, the supply of homes for sale was 3.78 months,but this figure did not include properties offered for sale by owners or directly by builders in the city and suburbs. Average monthly inventory fell by 3.3 percent while the number of homes listed for sale in Oklahoma City fell by 8.6 percent in March.
Although it has been a buyer’s market for some time, it hasn’t resulted in a sales boom. Realtors reported a year-on-year decrease in sales in March 2017 of 0.33 percent. The median days on the market before sale figure rose to 32 days and the number of new listings rose by almost 5 percent. The result is almost guaranteed pressure on the shrinking Oklahoma City inventory.
However, it wasn’t all bad news on the sales front. There was a huge number of pending sales in Q1, a year-over-year increase of almost 11 percent. In the event that most of these sales made it to closing, there was potential for things to change rapidly.
It briefly seemed as if there would be a sales boom after all by August,but momentum was stopped in its track as sales fell 24 percent in September compared to the previous month. However, it’s important to note that sales typically begin decreasing as the weather cools, which is borne out by the fact that these numbers represent a 4 percent increase over September 2016 numbers.
The Tiny House Boom
As 2017 progressed, Oklahoma City became the hub of a brand new craze, the ‘tiny home.’ The surge in interest caused the Oklahoma City Development Center to rethink existing building codes. According to David Adcock, the manager of the Center, the city will be adopting new building codes that should come into play in the first half of 2018, when the code begins including homes under 200 square feet.
How Much Is a Home Worth in Oklahoma City Now?
That depends on the site you check. According to Zillow’s Home Value Index, the median value of homes in Oklahoma City is $133,700, an increase of 2.4 percent in the last 12 months. The site also forecasts a further increase of 2.8 percent in the next year.
Trulia says that the median price of homes sold in Oklahoma City is $147,000; this equates to a price of $93 per square foot. It took its figures from sales between May 24 and August 23, 2017. It is a significant fall from the median sales figure of $182,500 from October 2016. The site has over 1,700 resale and new homes available to view as of December 15, 2017.
Another interesting statistic is that there are over 1,200 properties in Oklahoma City in one of the various stages of foreclosure. The October 2017 figure was 21 percent higher than the September figure and an incredible 42 percent higher than in October 2016. Moreover, the sales price of foreclosed homes fell by over $55,000 year-over-year in September 2017. You could purchase a foreclosed property in Oklahoma City for a median price of $80,000.
In most of the cities near Oklahoma City, it was a case of falling sales and rising prices. For example, Norman saw a 25 percent fall in sales but a 10.5 percent rise in median price year-over-year.
At the beginning of 2017, real estate experts expected sales to rise throughout the year,but in reality, the sales market remained flat while the median price of property also remained relatively low. The increased number of foreclosures in the city means there are a substantial amount of properties available at bargain prices.