OKC Real Estate Market

[OKCRealtor]

It seems like the prices are still high on houses. Even basic houses in the central core of the city are listing for $180-$200/sf. Is that just the new normal or do you think the market will start to correct itself?

We are experiencing a correction in real time right now, prices are off the all-time high from a couple months ago. I think it's more than likely short lived- maybe into early next year. Lot of people watching the Fed & rates and also the election. We are already seeing some rates in the 5's and when they go down a touch more I think it will be a different story again. 2025 as it looks now should be huge year for real estate. We have several years of pent up demand.

[BoulderSooner]

It seems like the prices are still high on houses. Even basic houses in the central core of the city are listing for $180-$200/sf. Is that just the new normal or do you think the market will start to correct itself?

if rates drop any appreciable amount prices will go up ..

[bamarsha]

It's a buyers market all a sudden, have seen some serious concessions & price reductions. More favorable conditions than prior to Covid. When we look back at this point in the near future it's going to look like a great time.

Now to get the interest rates back down...

[cinnamonjock]

I'm getting flooded with letters wanting me to refinance below 5%

[Pete]

Homes in my neighborhood are staying on the market longer and while there are usually concessions, we still see record $/SF closings.

Real estate always, always goes up in the mid- and longer-term. There can be short-term fluctuations but those waiting on the sidelines hoping prices will drop are just making it harder on themselves. You can always refi if/when rates drop.

[OKCRealtor]

Homes in my neighborhood are staying on the market longer and while there are usually concessions, we still see record $/SF closings.

Real estate always, always goes up in the mid- and longer-term. There can be short-term fluctuations but those waiting on the sidelines hoping prices will drop are just making it harder on themselves. You can always refi if/when rates drop.

Pretty much-this is not a time time to be on the sidelines. It's actually a time to buy and walk into instant equity. Prices overall are still near record highs but the net price when it's all said and done maybe 20-30k difference there which is huge. It's opposite of what we had 2-3 years ago paying 20-30k or more over.

As soon as these rates drop a little more and people realize it doesn't matter who wins the election it should be game on again.

[Pete]

^

Besides small and very short-term fluctuations, home prices are always at record highs.

[warreng88]

I'm getting flooded with letters wanting me to refinance below 5%

We bought our house in January of this year at 7% on a 30 year mortgage and paid 20% down (to avoid PMI). I spoke with mortgage broker last week who said we could refi at 5.85% on a 20 year, but the closing costs would still be $5,000. We are not wanting to do this again in a year or two, so we are going to wait until the rates get down to high 4's, low 5's. That also means commercial real estate rates will be in the mid to high 5's, which make it better for people borrowing.

[Canoe]

^

Besides small and very short-term fluctuations, home prices are always at record highs.

Is this true or is this a California mindset? On the other hand we have printed a lot of dollars in the past few years so this will probably be the case going forward.

[FighttheGoodFight]

Is this true or is this a California mindset? On the other hand we have printed a lot of dollars in the past few years so this will probably be the case going forward.

Housing has always gone up. Maybe 2008 the crash knocked prices down a bit but they kept going up after. My house purchased in 2013 has had a 82% increase in value as of this year. I have done 0 major renovations.

[OKCRealtor]

I would not at all be surprised to see housing in OKC 10-15% higher by this time next year. It might not seem like it but the market is down and we're at an inflection point here.

[progressiveboy]

If interest rates continue to fall, I see a lot of pent up demand. Of course, my mantra being if we could land some huge corporate jobs, it will push the local real estate market to a new level!

[oklip955]

Ok, Ok realtor and others, what do you see going forward the market for acreage properties close in as in Edmond. I am asking in the 5 to 20 ac range. What do you see as the demand as well as prices going? Where do you think the market will be next spring? Anyone have some educated guesses? thanks.

[Teo9969]

We bought our house in January of this year at 7% on a 30 year mortgage and paid 20% down (to avoid PMI). I spoke with mortgage broker last week who said we could refi at 5.85% on a 20 year, but the closing costs would still be $5,000. We are not wanting to do this again in a year or two, so we are going to wait until the rates get down to high 4's, low 5's. That also means commercial real estate rates will be in the mid to high 5's, which make it better for people borrowing.

Assuming you don't have any prohibitions on refinancing now, if I were you, I'd pull the paperwork from your last closing and then reach out to the title company that closed you and see if they could approximate the costs if you were to refinance and run through them - ask them what they could discount in comparison to your previous closing costs. From there, you could call around to a few banks and see if they can quote a rate/points + origination fee(s) for you and see if that + your title company's estimates works for you.

Even if you end up waiting it's not bad to have a few bankers chasing you for the next year for when the rate drops to what you're really looking for.

[Canoe]

Ok, Ok realtor and others, what do you see going forward the market for acreage properties close in as in Edmond. I am asking in the 5 to 20 ac range. What do you see as the demand as well as prices going? Where do you think the market will be next spring? Anyone have some educated guesses? thanks.

At any time between now and the future you could sell the property and make a nice profit. If the Realtors are to be believed the longer you keep the more, it will go up in nominal terms.

[OKCRealtor]

Fed delivers a large .50bps cut..

Woot!

More to come later this year as well.They waited and held them higher & longer than anyone anticipated and now appears they need to lower them quicker. I think they made the right call today all things considered vs starting with a nominal .25bps.

[Teo9969]

Fed delivers a large .50bps cut..

Woot!

More to come later this year as well.They waited and held them higher & longer than anyone anticipated and now appears they need to lower them quicker. I think they made the right call today all things considered vs starting with a nominal .25bps.

If nothing else, I think it allows them to get data quicker on how the lowering impacts inflation throughout Q1 and really even a little with Q4. If they see any significant uptick, they know they can probably hold off on cutting in early 2025.

I'd assume mortgage rates come down slightly more than they did in August but the bigger deal more immediately will be the relief on things like personal loans, credit cards, and other types of lines of credit.

Going to be interesting to see how far down High-Yield Savings drop...it was nice to sit on pure cash and get 4.5% but, those days are gone.

[OKCRealtor]

If nothing else, I think it allows them to get data quicker on how the lowering impacts inflation throughout Q1 and really even a little with Q4. If they see any significant uptick, they know they can probably hold off on cutting in early 2025.

I'd assume mortgage rates come down slightly more than they did in August but the bigger deal more immediately will be the relief on things like personal loans, credit cards, and other types of lines of credit.

Going to be interesting to see how far down High-Yield Savings drop...it was nice to sit on pure cash and get 4.5% but, those days are gone.

Yea getting that free cash in a money market/savings has been nice. Money moves in the literal sense & I think equities/real estate will be the biggest beneficiaries as this broadens out with more cuts coming. I've been waiting on this moment for a long time & already seeing things move just after the Fed meeting yesterday. I'll either be shifting a lot of money into equities or once real estate transactions stabilize a bit I'll just buy a rental. It's a great time.

[warreng88]

Assuming you don't have any prohibitions on refinancing now, if I were you, I'd pull the paperwork from your last closing and then reach out to the title company that closed you and see if they could approximate the costs if you were to refinance and run through them - ask them what they could discount in comparison to your previous closing costs. From there, you could call around to a few banks and see if they can quote a rate/points + origination fee(s) for you and see if that + your title company's estimates works for you.

Even if you end up waiting it's not bad to have a few bankers chasing you for the next year for when the rate drops to what you're really looking for.

I do commercial lending so I have a lot of the contacts at banks and then title companies as well. We used Old Republic Title who I have used for millions of dollars of loans so they give me a pretty good deal. That's a good idea to reach out and ask them what it would cost to update the title work. I also know there will be a fee associated with it and I don't want to pay that now and then in another year. Thanks for the advice.

[Jeepnokc]

My business partner and I have a lot of commercial loans for different properties. We have had good luck calling our bankers and asking for rate reduction. Usually not an issue as we do alot with them but they also know we have great relationship with several banks that would gladly refinance the note.

[kukblue1]

Saw somewhere that homes sales for August were the worst they been in a long time. I know a lot of people refinance right now but is anyone buying right now?

[OKCRealtor]

It has been quite a bit slower than normal in August/September even given the seasonality. A lot of stuff is just sitting. On a national level it now appears that 2024 may be the fewest transactions ever recorded. Worse than the great recession years. I thought it would have picked up a bit by now vs last year given that rates are 1.5-2% lower but I think political uncertainty has everyone in a wait & see. Overall 23 & 24 are going to go down as historically bad years in terms of transactions.

[djohn]

It has been quite a bit slower than normal in August/September even given the seasonality. A lot of stuff is just sitting. On a national level it now appears that 2024 may be the fewest transactions ever recorded. Worse than the great recession years. I thought it would have picked up a bit by now vs last year given that rates are 1.5-2% lower but I think political uncertainty has everyone in a wait & see. Overall 23 & 24 are going to go down as historically bad years in terms of transactions.

Wouldn't that cause prices to go down some?

[OKCRealtor]

Wouldn't that cause prices to go down some?

There is downward pressure on prices for sure, many properties are selling for less and/or requiring buyer concessions due to the increased supply & lower demand at the moment.

[warreng88]

There is a house down the street from me was listed for sale on 7/10/2024 at $499,900. It is a 3/3 2,783 sf built in 1929. On Saturday, they dropped the price down for the fourth time to $429,900.