Housing Market in OKC

[LakeEffect]

Verbode rocks.

I was really annoyed with how many homes we saw (back in 2012) that had spent a good amount of money on updates that were far from my family's taste. We passed on quite a few because the upgrades had driven up the cost, and the upgrades were of poor taste, poor quality or both.

[Teo9969]

It's only begun.

I fully expect to see everything in the Interstate Loop selling for over $100/sf by 2020, and most things selling for $150/sf+ especially if it's near a "district" (Classen/Western/Uptown) or in one of the stronger historic neighborhoods (Crown Heights, Putnam Heights, etc).

North of 23rd and West of Classen is the place right now for people who want to get in cheaper and see more upside from their investment, that area hasn't been near as flipped as everything to the East of Classen and South of 23rd.

Great pointers in the article about foundations and other infrastructural issues. Kitchens, Bathrooms…those are cheap. A bad foundation doesn't go away.

[FighttheGoodFight]

Verbode rocks.

I was really annoyed with how many homes we saw (back in 2012) that had spent a good amount of money on updates that were far from my family's taste. We passed on quite a few because the upgrades had driven up the cost, and the upgrades were of poor taste, poor quality or both.

This is why we bought an unupdated house. Some of the houses we saw.... I really don't know what they were thinking when updating. It made the houses look worse somehow...

[AP]

It's only begun.

I fully expect to see everything in the Interstate Loop selling for over $100/sf by 2020, and most things selling for $150/sf+ especially if it's near a "district" (Classen/Western/Uptown) or in one of the stronger historic neighborhoods (Crown Heights, Putnam Heights, etc).

North of 23rd and West of Classen is the place right now for people who want to get in cheaper and see more upside from their investment, that area hasn't been near as flipped as everything to the East of Classen and South of 23rd.

Great pointers in the article about foundations and other infrastructural issues. Kitchens, Bathrooms…those are cheap. A bad foundation doesn't go away.

If you look at sales in Mesta Park over the last year, they're already averaging 145-150/sqft. Paseo is right at 97/sqft

[John1780]

We paid $92/sq ft in Crestwood back in April, and that was after extended negotiations beginning at $112/sq ft for a mostly un-updated house other than central HVAC and appliances.

[Plutonic Panda]

Stable growth is projected for Oklahoma real estate in 2016 | News OK

[warreng88]

We paid $92/sq ft in Crestwood back in April, and that was after extended negotiations beginning at $112/sq ft for a mostly un-updated house other than central HVAC and appliances.

We paid $84/sf for our home in Crestwood in 2007 and could sell it all day for at $115/sf.

[oklip955]

Not sure that I agree with the take on the 2016 housing market. If oil drops to say $10-20 a barrel. There will be more layoffs. I'm guessing more houses on the market with prices falling and foreclosures in the future. I hope i'm wrong. Anyone else with some more expert knowlege??

[coov23]

Not sure that I agree with the take on the 2016 housing market. If oil drops to say $10-20 a barrel. There will be more layoffs. I'm guessing more houses on the market with prices falling and foreclosures in the future. I hope i'm wrong. Anyone else with some more expert knowlege??

Oil does effect the economy, but only 3% of the employment is energy based in okc metro. My mom is vice president of mortgage company and they are swamped. Same with my real estate friends. Its not the end all it was in the 80's.

[Tundra]

this is how 2015 finished up.

[Tundra]

December15BR.pdf

[Canoe]

December15BR.pdf

Good information. Thank you Tundra.

[Plutonic Panda]

RAISING ROOFS: Oklahoma will need to raise more roofs by 2020 | News OK

[Plutonic Panda]

High-end hustle: Prices fall in Gaillardia, while Nichols Hills sees gains | The Journal Record

[Plutonic Panda]

http://newsok.com/strong-neighborhoo...rticle/5507034

[Plutonic Panda]

http://journalrecord.com/2016/08/22/...d-real-estate/

[warreng88]

Lots of lots, but no hurry to build homes

By: Molly M. Fleming The Journal Record August 22, 2016

OKLAHOMA CITY – National Association of Home Builders economist Robert Dietz said the lack of developed lots has slowed home construction in the United States.

That’s not the case in the metro, though rural areas have had that problem.

In Oklahoma City, home sites are now in abundance, but that wasn’t the case two years ago, said Caleb McCaleb, owner and president of McCaleb Homes.

“We were actually in a lot shortage two years ago because our economy was so hot,” McCaleb said. “That was when oil was $100 a barrel. Now, there is an oversupply of finished lots.”

He said the process from preliminary plat to final plat to roads is lengthy. Builders started platting but have since backed off building the homes while they wait out the oil price downturn. When work begins again, he said he hopes other builders will communicate more about where they’re working.

“In other markets, there are companies that do surveys of finished lots, oncoming lots, those going through the preliminary plat stage and final plat stage,” he said. “We need better information. You have a lot of developers and banks out there, and you can get an oversupply of home development too quick.”

In rural areas, having the land isn’t the problem. It’s getting the infrastructure to the land that can be an issue, said Brent Kisling, executive director of the Enid Regional Development Authority. He said some cities in Garfield County are considering incentivizing developers, with utility extensions being part of the incentive packages.

Dietz said the national organization has heard from builders that a lack of action by city government is delaying land development and construction cycles. He said regulatory burdens are continuously rising. Today, regulatory burdens make up 25 percent of a home’s final purchase price, a cost that has risen 29 percent in the last 25 years.

Kisling said he’s seen firsthand the benefits of infrastructure development. The city needed apartment units, and a developer was interested in building a 200-unit complex, but needed a road, which the city agreed to build. With that work, a Wal-Mart Neighborhood Market has been constructed nearby, as well as another unannounced retail development.

“We may end up generating more sales tax than what it cost to put in that road,” Kisling said.

Besides a lack of home sites, a labor decline is slowing construction. Dietz said his group’s members listed labor vacancy as the No. 1 business challenge in 2015, and it will be the same problem in 2016.

“We are seeing growing housing demand, and we should have an opportunity for a lot of building growth,” Dietz said. “But we don’t see that. Part of the answer is the constraints on the supply of the market.”

[SoonerDave]

Right now, it's a buyer's market. There are several very nice houses in our general area for sale, but some of these homeowners are out of touch with the going rates. Virtually every house for which I've picked up a flyer or talked to the seller is overpriced - and it doesn't take a lot of effort to review comps or estimated prices to see it. The killer in some areas is where you have a *very* nice house in a nice area, but the house is now a bit "overbuilt" or "over-featured" but can't command the price those features might imply in a better-suited neighborhood....as is so often the case, you're better off with a smaller, suitably-built house in a generally larger area than the biggest, most extravagant house....

[Richard at Remax]

It may seem like a buyers market but the MLS data for the past few months has shown that homes are going between 98-99% of asking price on average. Which shows that the majority are pricing right, but not a buyers market where things are getting stolen per se. MLS wide there is a 4 .5 month supply (or absorption rate) but it's that low because homes under ~$200K (in good and bad areas) in the city proper are flying off the shelves. Anything in the burbs over $250-300K are struggling right now. Some neighborhoods have years of supply since nothing is moving. I have a listing in NE Edmond that's in a good area, priced aggressively due to competition, built in 2014, but haven't had one showing in 20 days. The other realtors I've spoken to in the area are experiencing it as well. Not a good time to be greedy on the sellers side in the burbs.

[Pete]

^

I just bought a house and I think your assessment is exactly right.

Houses around $200K are still moving fast. There are a bunch of them around that price and the ones in nicer neighborhoods and/or have been nicely remodeled go quickly.

In fact, I bought my house before it was even placed on the MLS. I was monitoring neighborhoods I liked and came across this house that was clearly being renovated. I found the owners (essentially house flippers) through the assessors site and we struck a deal.

This is over by Penn Square and anything under $250K in this area seems to sell very quickly.

[sooner88]

^

I just bought a house and I think your assessment is exactly right.

Houses around $200K are still moving fast. There are a bunch of them around that price and the ones in nicer neighborhoods and/or have been nicely remodeled go quickly.

In fact, I bought my house before it was even placed on the MLS. I was monitoring neighborhoods I liked and came across this house that was clearly being renovated. I found the owners (essentially house flippers) through the assessors site and we struck a deal.

This is over by Penn Square and anything under $250K in this area seems to sell very quickly.

I can attest to this too. I've been looking for houses in that range for the past year or two and you have to move quickly if you want to have a shot. I made an offer for full ask within 6 hours of a house going on the market 2 months ago in the Crown Heights area and they had several offers matching mine and eventually over ask within 24 hours.

[AP]

A house on my street at 42nd and McKinley was recently flipped and had a contract in 15 days. Listed at ~195K, $137/sqft. We bought ours a year ago, though the quality of flip was a little lower imo, for 102/sqft. So, things in the core still seem to be moving well. Makes me pretty happy to see the value increase

[Pete]

It seems there are a lot of people looking in the $175-$250K range in the closer in neighborhoods and anything decent goes fast.

There have been some pretty small houses near me with 1-car garages that have sold well north of $150K.

My neighborhood is mainly 60's ranch houses and this is about as close in as you can find them. I love those houses because they are very easy to remodel to an open floorplan and are built on a slab foundation, so you don't have all those old house headaches.

I'll post pictures of my house at some point but it's pretty awesome. Completely wide open with a huge new kitchen; was taken back to the studs. New roof, electrical, HVAC, garage doors, windows, baths and hardwood floors. And on a large lot.

And I'm literally 8 minutes from downtown and just as close to friends, families and meetings out north.

Great value and great location and as much as I want to be downtown, it's going to be very hard to beat what I have now, especially considering my tiny mortgage.

[AP]

especially considering my tiny mortgage.

I bet that's one of the biggest perks in moving from SoCal to OKC.

[Richard at Remax]

Just for reference I have my own search set up for potential rental properties. The area I am focusing on is NW Expressway up to Turnpike and Hefner Parkway over to western, some spots around Penn Sq, and around 36th and Western. My parameters are $135,000 and under with no REO/Short Sales. I have 42 total properties I am following. 7 are active, 35 are pending. Most go within a few weeks. Pretty impressive.