A rare cloud drifts over OKC property markets

[bchris02]

A rare cloud drifts over Oklahoma City property markets | News OK

Thoughts on this article? What can OKC do to improve its attractiveness to outside real estate investors?

[Mel]

Ban tornados and hail storms. Plus our insurance would go down.

[Plutonic Panda]

Investment outlook is not looking good for OKC?????? That's funny, because nearly literally every corner of this city I go around, I see another 'investment' being made. The amount of new construction just in the past year is pretty incredible, and not just in Downtown OKC.

[Pete]

This says it all:

"The outlook for home building did rise, but the increase was not enough to keep pace with other markets.”

That last part is a head-scratcher. If the outlook for home building here didn’t rise as fast as in other markets, it’s because housing recovery here had a shallower hole from which to emerge.

We are just now starting to see out-of-state developers move into the market. To date, everything built has been taxpayer money or locals.

So, we have lots more locals involved in development plus for the first time out-of-state entities coming in: Glimcher (NH Plaza, Classen Curve, undeveloped property), Bomasada (The Metropolitan), Milhaus (LIFT), and 21c Hotels. That's over $200 million in investment just in the last year. The Lumber Yard and the rumored BOK Tower are also being driven by out-of-state developers and Chisholm Creek just brought in a very experienced partner from Austin.

At the same time, office vacancy everywhere in town is at record lows and the retail market is primed for lots of new national chains.


Our real estate market is red hot and is only going to pick up, and probably dramatically. That's based on fact and what we know to be in the pipeline, not arbitrary measurements and assumptions.

[josh]

Here's the full Markets to Watch list.

[PhiAlpha]

I can attest to the inner core residential market being completely on fire, especially in the better neighborhoods. A house went up for sale three doors down from me that I wanted to buy as a rental property, it was listed at $25k over its market value. Before it was even listed (only had a sign out in front but was not on mls) I put an offer on it and was one among 8 other offers, two of which were cash buyers. I'm likely going to lose and mine was over the asking price. It is absolutely ridiculous down here right now.


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[Plutonic Panda]

I can also personally attest to the home market being on fire in Edmond, N. OKC, and Yukon. The whole city is booming, so that list doesn't seem right to me.

[LakeEffect]

Maybe PWC negatively ranked because they just moved into the market and don't want competition? Just a (cynical) guestimation.

[bluedogok]

Maybe PWC negatively ranked because they just moved into the market and don't want competition? Just a (cynical) guestimation.

That was my thinking.....

[oklip955]

If you have any doubts about the market, go look at land prices in the N. Okc, or Edmond area. Wow, the prices are going up.

[bluedogok]

It has been a steady one, I don't think the houses in the Mayfair area are in the 40's like they were when I moved to Austin.

[adaniel]

Good site for those interested in OKC real estate statistics:

Oklahoma City Metro Area Real Estate Market Statistics - ShowMeOKC

According to this, OKC has averaged about a 4.32 month's supply between Feb 2013 and Feb 2014. Anything below a 6 months supply is considered a sellers market. It's important to note that that time frame includes a lot of events that would have negatively affected the real estate market here (Moore tornado, government shutdown, Chesapeake layoffs, freakishly cold winter) and yet February's inventory number was still lower year-to-year. Also, according to this website (which is reporting a slightly higher home inventory) there have never been fewer homes on the market in the past few months than at any point since they started keeping records in 2006.

I also remember an article from Richard Mize a few months ago that OKC area lot inventory for new homes is getting dangerously low and has been for some time.

Industrial property is VERY tight, especially out on the west side where you have a lot of oil field equipment yards setting up shop. I don't know a lot about commercial real estate but given how people were freaking out last year when CHK started unloading a lot of commercial properties only to have nearly all of it snapped up speaks for itself.

I don't know how PwC calculated this but if high real estate returns are weighted higher than overall health and activity then yeah I could probably see why OKC ranks so low. Doesn't mean the RE market here is bad, and if you want a high return you are probably going to have to buy in some outrageously expensive market. Thats probably why disgustingly unaffordable San Francisco is #1.