Home Appreciation?

[shadow42]

So, as I have told everyone in previous posts...We are moving from socal in June. Have not found a home yet, but like several neighborhoods. My husband has been told by several colleagues that if we buy a home we won't see any appreciation. A BIG complaint of those who have lived in the area for work but have since relocated back to socal. So, my question is....have you all experienced home appreciation? If so, how long have you owned your homes?

[metro]

Your colleagues are spewing BS then. Any appreciation? Really? Unless they are living in a structure that needs to be condemned, I don't see how that's possible.

Forbes just last week ranked OKC #1 in recession proof cities because of our housing situation is strong and our economy. You will not see SoCal type of appreciation like a few years back because our prices are more reasonably priced and did not get over-inflated. OKC experiences smart growth, not over-inflated market growth.

FYI...glad to hear your moving to OKC. Tons of Californians and other left coasters are moving here on a regular basis now. They're tired of the ridiculous market in SoCal. At least here, you can truly own a home and have disposable income to boot. If I moved to SoCal, I'd have to accept the fact I'd probably never own a house.

[Steve]

Will you see the sort of skyrocketing home appreciation experienced in recent years in Southern California? Probably not. Homes here appreciate, but at a moderate pace. Oklahoma City Realtors will also point out that the housing market here hasn't collapsed as it has in in California for the same reasons. Live here just a year or two and the appreciation might not be that much. But since the oil bust, appreciation in housing values in Oklahoma City have generally been consistent long-run.

[OKCTalker]

AAAAAUUUGHHH! When did houses stop being where families live and start being a financial play, where the decisions are dictated by financial upside and value appreciation? Isn't this what led us to the housing crash and credit crunch? My suggestion would be to rent for your first year while you drive through neighborhoods, make friends, find places where you'd like to spend your time, and learn the city. Try it before you buy it. Otherwise, you'll make this critical decision based upon partial and (as you'll learn about your husband's colleagues) mis-information. You and your husband didn't make the decision to marry based upon someone else's recommendation, or after just a couple of dates. You didn't commit until you had dated lots of other people, got to know each other well, and it was right for both of you. Welcome to Oklahoma City. I hope that you'll make it your home, and in it, you'll find the right house that also becomes your home.

[traxx]

Homes in Oklahoma are like homes anywhere else, they are an appreciating asset. But you will not be able to double your money in a few years like in California.

If you're looking to flip or make mad money off of a house, then Oklahoma is not the market for you. Oklahoma has a much more stable housing market than the wildly volatile California market.

If you're looking for a great place to raise a family and call home, then there a several very good choices as you pointed out in your post.

Remember, just because 1500 sf houses are selling for 700K in a certain area doesn't mean that they are worth 700K. As evidenced by the housing crash.

[betts]

My house has appreciated about 50% since I bought it six years ago. That's been about standard for the houses I've bought and sold since we moved here, with the exception of our first house, which we unfortunately bought at the peak of the oil boom and sold during the bust.

[OKCCrime]

Yes homes appreciate even in the 5th place Hell on Earth
Some actual data:

[shadow42]

Ooops...I realize I hit some nerves...sorry. OKCTalker, you are preaching to the choir. I told my hubby the same exact thing you say in your post. He was concerned. I am not...so long as there is no depreciation should we need to sell. Many of my neighbors here are seriously upside down because they bought when the mkt was high. They will not be able to sell for years to come. I think Edmond will be a great place for our boys and am so looking forward to having disposable income again! Thanks to you all.

[Karried]

It's always a good thing to do research before you uproot your family to another state.... but OKCTalker hit the nail square on the head.

Problem being, those from CA have pretty much been spoiled to 'homes always going up' (although I still remember the early 90's ) ... I think of OK like a Tortoise/Hare race.. at this point in the race, we're looking pretty good compared to the rest of the country.

We're still plugging away at about 4 - 5 % annual appreciation.

Renting when you first come might just be the best thing for you, but you'll have to decide if it is worth the hassle.

Take a look at how some CA markets are faring:

Housing Crash Continues, Bubble Pops

[shadow42]

Hi, Karried. I know all to well about the CA mkt. We are very conservative and so stayed in our not-so-big home rather that "move up" like lots of people. So, although our home values dropped a good 20% or more, we still were able to sell and walk away with quite a bit of $$$$$. Not true for lots of folks that over bought and overpaid. One of the reasons I personally want to get out of here is that attitude of showing that one is "better" than someone else by the size of their home and type of car they drive. I would like my kids to grow up in a more "normal" , healthy atmosphere where people care about the most impt stuff....like other people. Anyway, enough ranting. I think you are right and we are somewhat spoiled here and do expect some level of appreciation on a home. Ours doubled in about 3yrs and I thought the house was overpriced when we bought it 6yrs ago...lol. One of my husband's colleagues told him they lived in Edmond for 10yrs and sold their home for just about what they bought it for ten yrs prior....so just wanted to check here and see what the reality actually is. Thanks.

[Karried]

Your husband's friend is probably right... after Realtor fees, closing costs... that small equity increase is quickly gobbled up upon selling.

But, I think people are leaning more to the idea of a home as a home to raise a family and live their lives and not so much as an investment.

Truthfully, it was a shocker to me too ... I lived in CA my entire life (I've lived here 5 years).... and the mentality in CA is work, commute, work, commute... on and on .... all in an effort to get that House! And then refinance, remodel, buy more cars and toys with your equity, and then do it all over again.

We were like you, pretty conservative, stayed in our home and didn't refinance like crazy either.

Over the years, I've owned a few houses in CA and this was the first time I've seen such a high rate of appreciation in such a short time (and wouldn't you know it, it happened right after we Sold in CA! ) but this is also the worst market now I've ever seen too. Many homes are getting back down to reasonable market values now and I anticipate a lot more to come.

At least your hubby won't be surprised!

[kevinpate]

> ... I personally want to get out of here is that attitude of showing that one is
> "better" than someone else by the size of their home and type of car they
> drive.

Maybe consider expanding your location search on this end somewhat, lest you land and find same song, second verse

[pearlbluevtx]

OKCCRIME has a good chart. I would say OKC metro/OK in general are in pretty good shape B/C of the gradual appreciation in real estate vs the 50%-100% gains in short periods of time. That's still why I think we are doing okay ... not like we were 3 years ago but not like East/West costs/LV etc.

If you go buy a $1mil home, I'd be more worried about that ... if you are in the $250k-$400k range in the metro areas, then I wouldn't be too worried but I wouldn't be thinking you will make a ton of money either in 3 yrs .. 10 yrs, might see appreciation but who knows. Economy could be horrible here in 10 yrs and wonderful everywhere else etc - just hard to know. HTH

[shadow42]

We are looking in the 300k range, and not looking to overspend at all. Want to make financially smart decision regarding the home price and location...etc.
KevinPate....are you suggesting the attitude in Edmond is similar to socal?

[betts]

I don't live in Edmond, but I suspect that there are people everywhere who judge you based on where you live and what kind of car you drive. The good news is that the people who are worth having as friends won't. I've found a lot of people here worth having as friends.

[pearlbluevtx]

I think you hit it dead on BETTS ... nicely put.

@Shadow ... Never lived in SoCal but have lived other places but OKC is home and was a great place to come back too - after a Big D visit for a while!

There's snobby, attitude everywhere - Edmond has it but Norman and OKC - north & south - have it too. I'd say Downtown too! (gasp) I don't put stock in what people drive, how they dress or if they have a mcmansion or not.

I'm biased but live in Edmond, grew up in N OKC and Norman ... Edmond is a nice place just like most of the areas around metro ok. We have a great metro city area and you will be pleased.

I don't live in Edmond, but I suspect that there are people everywhere who judge you based on where you live and what kind of car you drive. The good news is that the people who are worth having as friends won't. I've found a lot of people here worth having as friends.

[OU Adonis]

I don't live in Edmond, but I suspect that there are people everywhere who judge you based on where you live and what kind of car you drive. The good news is that the people who are worth having as friends won't. I've found a lot of people here worth having as friends.

I would say there are more of those in Edmond though.

[kevinpate]

> ... suggesting the attitude in Edmond is similar to socal?

in part, yes. However, in fairness to some really great folks who also live in that area, I readily concede Edmond hasn't totally cornered the market on long nosed folks.

[Karried]

We moved to Edmond based on the schools for our kids.

I never even knew there was a rivalry between South and North Oklahoma.

But, over time, I guess I've figured out that a some people think that Edmond is filled with snobs. It's usually those who don't live in Edmond.

Most people I know that live in Edmond are just normal families raising their kids. For the most part, they are college educated, professionals w higher incomes... I guess that might make them appear snobby to some people.

It's just like anywhere else. I think it boils down to how you treat people.... karma and all that.

I actually think places like Nichols Hills are pretty wealthy, they have some awesome historical mansions.. old money - their Christmas displays alone probably cost more than some homes in Edmond.

[FritterGirl]

I think Edmond got a bad rap when so much development started heading its way about 20-25 years ago. People were not happy with OKC schools, and Edmond had a better district. As such, much of the (upper middle-class) money followed.

Home prices are slightly more expensive in Edmond, on average, because of the school tax rate, which is higher than it is in OKC. In addition, Edmond has a higher per capita income ratio against OKC, although that’s really comparing apples to oranges given each city’s population. OKC has large pockets of concentrated wealth (Nichols Hills, Heritage Hills, Quail Creek, Rivendell, parts of far NW OKC, etc.) scattered among more middle and lower-middle-class areas. Edmond has more overall density of wealth, although it also has its share of middle and working-class neighborhoods.

Another factor contributing to Edmond’s “snobbism,” is that its city government, when it saw how explosive development was, put together stringent zoning requirements regarding landscaping, signage, etc. for businesses. Some folks believe these requirements went too far.

These and similar factors contribute to many people’s perception that Edmond is “snobby.” Personally, if you were to walk into a store in Edmond and another in OKC, I doubt the experience would be much different. You would find people helpful, friendly and hospitable.

Overall, I think “snobbism” is a sense of protectionism we have for our preferences. I’m snobby about not wanting to eat at most chain restaurants. I’m snobby about the types of movies I want to see. Some people are snobby because they go to a certain church, or drive a certain car, or only wear a certain brand of clothing. We all have our “snobbisms” of sorts.

In general, however, I think you and your family will find that the majority of people you will meet in Oklahoma are very salt-of-the-earth people, hard-working, friendly, hospitable to new people. And as you’ve said, it’s really a great place to raise a family.

[traxx]

My sister lives in Steeplechase and has succumbed to the keeping-up-with-the-Joneses and mine-is-better-than-yours downfall. When they moved to their current house, her husband's ex asked for more money because of the appearance of affluence do to the house they bought. Now my sister complains about the debt and outflow of money but won't move to a more affordable house because that's the crow she runs with.

That's not to say that Edmond isn't a very nice place to live. I just wanted you to be aware that you may not escape the money competition mentality completely when you move to Edmond, but I figure it'd be considerably less. As you know, Edmond has some of the prettiest and most picturesque neighborhoods, rolling hills and lots of trees.

You're gonna love it here.

[shadow42]

Yeah, I would be completely surprised if the keep-up-with the Jones' mentality is as bad in Edmond as it is here in socal. You will find that attitude everywhere these days. I think some places just have more of it. I did not notice it during either of my visits, but it is different once you live in a place.

[OUGrad05]

You'll have some appreciation here but if you plan to live here two years or less its probably smarter to rent. If you see yourself staying here 3, 5 or r10 years buy a house.

Also I prefer Edmond and/or Norman in the OKC area. Both are pretty nice upper middle class communities and Norman has OU

[dkbrewer]

My house, a little Tudor style gem, bought in 2000 has appreciated 27% by county assessors. I had an outright offer for much more. I agree that you won't make a killing as some have in the more speculative markets but you should come out alright if you're here for a while. Keep in mind that new developments are going up all the time and 5 yrs from now, a prospective buyer will be able to get a brand new spanking house for what some sell their 5yrs house at. Personally, I think the older hoes and the historic parts of central OKC are a good deal. Their prices for the 8 years, that I'm aware seem to continue to appreciate.

[shadow42]

Where would be the best place to look for home rentals? I have searched the net and really don't see much to rent in Edmond...in the way of a house, that is. Plenty of apartments, but not an option for us.