Housing Market in OKC

[Plutonic Panda]

Also, the best thing for affordability is to limit the restrictions on density, especially in the close-in neighborhoods surrounding the urban core. If I had my way, every single one of those neighborhoods (even MP & HH) would be zoned to allow at least 3-4 units per lot. There are a bunch of small, old, houses frankly not worth saving that are being remodeled at juiced up valuations because supply is being artificially restricted. This is especially the case in Classen-Ten-Penn near the Plaza and in between Uptown and the Paseo.

If denser infill was allowed to be developed across large swaths of the city's traditional neighborhoods, it would dramatically help overall affordability and reduce displacement from gentrification. At the very least, ADUs/garage apartments should be allowed by right city-wide.

I say all this as a Mesta Park resident who lives in a house that honestly should have been torn down years ago and replaced by a small walkup apartment building.

I'm not trying to take shots you, but density will not make housing affordable.

http://www.debunkingportland.com/densitywon't.html

http://www.kennedycommission.org/inc...ythsnfacts.pdf

https://psmag.com/social-justice/ill...fordable-85313

https://tcf.org/content/commentary/s...ousing-crisis/

That is not to say I don't want to see more density in OKC. I agree with you here, I'd love to see row homes and micro apartment buildings surrounding the core like Philadelphia or Chicago currently have.

[Montreal]

Thanks for sharing those. I think you're missing two key points though.

1) Older housing stock is generally cheaper than newer (at least when supply is able to keep up)
2) Not all density is the same (big big difference in a duplex and a high rise apartment tower)

Yes, new housing complexes built recently will be more expensive than those that are older. Tastes change; amenities-desired evolve; newer buildings are typically more comfortable and nicer. That is why it is critically important to keep increasing supply where there is demand over time and not in short bursts. The problem is that we've (nationally) limited many types of supply in recent decades, which has come back to bite us big time.
Houston (as of recent) is a great example of what adequate supply can do: https://pbs.twimg.com/media/C9yWxbZXUAI5h9j.jpg
LA also demonstrates what can happen when you restrict supply (I'm sure you know what prices have done over this same time): https://pbs.twimg.com/media/C2DyzuDUsAEtTa_.jpg
Same with NYC (zoning severely restricted supply not too long before the big run-up in prices):
https://pbs.twimg.com/media/C8MrzGCXYAABjdQ.jpg
Vancouver shows very well what happens when you allow looser supply for certain types of units but restrict others: http://www.news1130.com/wp-content/b...2/02/rebgv.jpg

What you allow to be built dramatically affects overall pricing. Simply put, smaller multifamily units are cheaper to build and rent out than large apartment/condo projects: https://www.bloomberg.com/news/artic...dy-builds-them

Bottom line: increasing supply over a wide swath of a municipality and wide spectrum of housing types keeps prices in check over time.

[riflesforwatie]

This is especially the case in Classen-Ten-Penn near the Plaza and in between Uptown and the Paseo.

I agree with all of your post but particularly this. A lot of the close-in market is bubbly right now, but CTP absolutely screams "bubble" to me.

[Plutonic Panda]

http://newsok.com/oklahoma-city-home...rticle/5586503

[Richard at Remax]

The part of town I really worry about is the East of I35 and Covell area. The new homes out there are going for ~$150 to up to $170/ft. To me they are way up there on price because the potential of the area is already built in. If you plan to buy out there, but move within 5-10 years you will get HAMMERED when you sell. So much better value in other parts of the north Metro. Quality of construction seems to be lacking as well from what I have seen.

[SoonerDave]

The part of town I really worry about is the East of I35 and Covell area. The new homes out there are going for ~$150 to up to $170/ft. To me they are way up there on price because the potential of the area is already built in. If you plan to buy out there, but move within 5-10 years you will get HAMMERED when you sell. So much better value in other parts of the north Metro. Quality of construction seems to be lacking as well from what I have seen.

Construction quality is an issue just about everywhere, particularly where lots of "questionable" builders flock to areas where the margins are really attractive. The only way any buyer can have a semblance of hope is to go out and look at homes under construction for a given builder. Sadly, way too many customers simply look at a beautifully finished home with lots of eye candy, and just assume the bones are comparable. Some of the cheapest construction tricks I've seen have been in the highest-dollar homes. You simply cannot judge by a completed home. That's why a lot of landowners will attempt to limit new development to only a select few builders they know personally or have an established reputation...

[Plutonic Panda]

Article about the hot housing market. This is a national trend.

https://kfor.com/news/local/homebuye...ousing-market/

[Pete]

The house next to me went up for sale last week, had multiple offers above asking price, and was under contract in about 3 days.

I bet 20 different people came by to look at it in that short time.

Very glad I own right now.

[FighttheGoodFight]

One home in our neighborhood that I would consider an ugly duckling sold in a week. The previous time it was for sale it took 2 years to sell and owners lost a ton. Just sold after the new owners has it for a year, painted the outside and made close to 75k. Weird market.

[josh]

Yeah, in San Antonio right now the housing supply is at a record low because people are coming in from out of state and buying with cash. Homes are going 20-40k above asking on average. It’s wild.

Just found this article.

https://www.kens5.com/article/syndic...0-e8e0f3164cdf

Lopez said that record low supply of homes is astonishing considering the size of the San Antonio area.

"There's only about about 2,000 homes on the market right now in this county," Lopez said. "We're actually, as you know, the seventh largest city in the nation. And so we've got over a million people with only 2,000 homes on the market. We're at a less than a month supply right where the average norm is supposed to at six months [supply]."

[Bits_Of_Real_Panther]

My neighborhood is getting expensive

[Midtowner]

The house behind us went up for sale on Friday in NWOKC (two days ago). They had 26 offers after the first day of showings, including from several out of state corporations. It's not a fixer upper either.

[Pete]

Just had some friends in Denver bid $90K over asking price and waived the right to inspection and appraisal.

Still lost out as the house drew 28 offers in 3 days.

[FighttheGoodFight]

This is a bubble right? We will have another crash of some sort? I know my house is way over valued right now. No way it has gone this high up since we have lived here

[Pete]

Things will level out when the supply chain (for lumber, etc.) gets back up to full speed.

Just a temporary housing shortage because of that.

That said, apart from short-term ups and downs, homes always go up in value over time.

[ChrisHayes]

I bought my house by OCCC for 91,500 in 2018. It was appraised at 93,500. Early last year, I refinanced and it was appraised at 98,500. I can't imagine what it would appraise at today. My guess is at the very least 105k

[progressiveboy]

A prime example of the Red Hot Texas market, a home listed in the affluent Southlake suburb of FW sold for $300K over the asking price! It was listed as $1 million dollars and sold for $1.3 million. Interesting enough, appraisals are not keeping up with the price hikes. Also, in DFW, there are lots of cash offers which saves on $$ no closing costs etc.. Many buyers are getting priced out of the market. Also, with all the major corporate relocations to the DFW area, this is also causing a supply and demand issue.

[soonerguru]

A prime example of the Red Hot Texas market, a home listed in the affluent Southlake suburb of FW sold for $300K over the asking price! It was listed as $1 million dollars and sold for $1.3 million. Interesting enough, appraisals are not keeping up with the price hikes. Also, in DFW, there are lots of cash offers which saves on $$ no closing costs etc.. Many buyers are getting priced out of the market. Also, with all the major corporate relocations to the DFW area, this is also causing a supply and demand issue.

Imagine paying that much money to live in freaking DALLAS. Joke's on them.

Eventually Dallas will cost as much as LA without any of the appeal of LA.

[progressiveboy]

Imagine paying that much money to live in freaking DALLAS. Joke's on them.

Eventually Dallas will cost as much as LA without any of the appeal of LA.

Agree. LA has the Hollywood Hills, sweeping canyons overlooking the Pacific Ocean! The weather is great and you can grow anything out in Southern California. Beautiful areas such as Pacific Palisades, Bel Aire, Beverly Hills and nice suburbs live Culver City. What Texas has going for them is a great business climate unlike California, no State Income Tax, unlike California, no taxes on food/groceries. California companies are moving to DFW and Austin in groves because of the cost of doing business is much cheaper, however, cost of living is becoming an "growing issue" in DFW. I give accolades to DFW for being a clean, modern city with thriving suburbs like Plano, Frisco, Prosper, Southlake. Would like to see OKC grab a little bit of these companies and make the city more prosperous and desirable. To me, OKC, my hometown is still a big overgrown cowtown and needs to be cleaned up. OKC is too dirty for me.

[Plutonic Panda]

I agree about OKC. It is an extremely ugly city unfortunately. It has been changing for the better recently and has become more lively. I only expect this to get better with MAPS 4. Great things are ahead for OKC.

[HOT ROD]

we need serious tree planting and maintenance. Let's benchmark what Tulsa has done.

Let's also make and enforce CODE and force developers to build aesthetically.

[mugofbeer]

That storm last fall didn't help the tree situation at all. So many need to be replanted.

[Rover]

we need serious tree planting and maintenance. Let's benchmark what Tulsa has done.

Let's also make and enforce CODE and force developers to build aesthetically.

Code enforcement is one thing. Dictating aesthetic choice is another. Whose idea of aesthetics reigns?

[WheelerD Guy]

Code enforcement is one thing. Dictating aesthetic choice is another. Whose idea of aesthetics reigns?

+1

And the market tends to sort out aesthetics. Much higher valuations placed on sharp looking units, like at Wheeler, for example

[ChrisHayes]

Yeah, I don't like the idea of forcing developers to build one way or another. Personally, when I move to my next house, it won't have any trees, or I'll have them all cut down. Big ones at least. Big trees are a hassle