Housing Market in OKC

[Martin]

The house is 8500+ sq feet. No way it sells for less than $100 a square foot putting it at least at $850k

it might find just the right buyer... but to me it has a style that requires a very specific buyer, it's way overbuilt for the neighborhood it's in (the neighboring houses are 2000-3000 sq. feet), it only has two garage spaces, it's essentially a 1982 era house that has been added on to multiple times and the layout shows. i suspect that an inspection is going to reveal some serious functional issues. i could maybe see it going for around $700k-750k if the owner is willing/able to go that low.

[Anonymous.]

How are these two homes comparable in any way? Drastically different styles. Different sizes. Different settings.

I more meant the castle-theme. Lots of heavy woods and iron finishes.

[Richard at Remax]

You never want to be the biggest house in the neighborhood. Esp when the size difference is that drastic. This is what happens when you build your "dream home" surrounded by not dream homes. This will take a while to sell.

[soonerguru]

It is a design atrocity! But, as noted here, there are people on OKCTalk that like it.

[Bill Robertson]

You never want to be the biggest house in the neighborhood. Esp when the size difference is that drastic. This is what happens when you build your "dream home" surrounded by not dream homes. This will take a while to sell.

It really surprised me a few years ago when a house I had previously had built blew up and took two others with it. Average size of the neighborhood was 1300 to 1400 sq ft. The three new houses were closer to 2500.

[Bill Robertson]

I've noticed that houses in our neighborhood aren't selling as fast as the signs appear lately. I know of 4 that have had signs in the yards for a few weeks.

[Martin]

I was browsing Facebook and saw a beautiful house for sale I was for sure was located in Britain somewhere but turns out it’s for sale in Norman: https://www.ledger-enquirer.com/news...263733628.html

Direct Zillow link: https://www.zillow.com/homedetails/4...ource=txtshare

this one is still on the market, down from $1.5M to just $875k.

[Bits_Of_Real_Panther]

What is a rough construction cost $ / sq ft for single family stick built on an owned lot, just standard level quality, like a 3 bd /2 bath ? Okc metro area?

[Bill Robertson]

What is a rough construction cost $ / sq ft for single family stick built on an owned lot, just standard level quality, like a 3 bd /2 bath ? Okc metro area?

Not exact but I know a couple that are looking at new around 1700sq ft houses in Mustang and they're seeing 310,000 to 340,000. So by that it would be 182 to 200 per sq ft.

[Plutonic Panda]

this one is still on the market, down from $1.5M to just $875k.

Good deal if they keep lowering the price I might be able to pull out my checkbook.

[Plutonic Panda]

Great report from The Frontier about the housing market issues in OKC: https://www.readfrontier.org/stories...h8DieTTdxru51w

[Plutonic Panda]

Another article about this issue: https://freepressokc.com/okc-housing...omeshares-biz/

[Plutonic Panda]

Rental market has seen a massive increase, one of the largest in the country in fact:

OKC had the largest year-over-year increase in the country, with a 24.1% increase in rent compared to last year.

- https://okcfox.com/news/local/oklaho...eter-levinson#

[OKCRealtor]

Rental market has seen a massive increase, one of the largest in the country in fact:



- https://okcfox.com/news/local/oklaho...eter-levinson#

Not too surprising given inflation + market conditions. It will be interesting to see what happens in '23 given economic outlook & conditions now. The unfortunate part is that a lot of renters who wanted to buy since 2020 - present but couldn't are now completely priced out of the market with rates and thus have no other option but to rent. We really need focus more on homeownership education for young people so they aren't in these situations.

[oklip955]

I am not an expert but the feeling I get is so many people want their first house to be like their parents move up house. What happened to starter homes? My first house was 700 sq ft 2 bed, 1 bath on 2 ac. It turned out to be a good deal. First it got me it to a house I could afford, second it was a place I could keep my horses, and third it was a great investment. It more then doubled the value in the two years I owned it. I was able to divide it up into lots and sold it to someone who build starter homes. I was able to take the money, move a bit farther out and buy 10 ac and build a bit larger home. Point being, your first home may not be exactly your dream home but it beats renting and builds equity. Most will not fall into the deal that i did. Still that starter home be it a small one bed or a small 3 bed is usually better then a rental. Maybe builders need to start building small 2 bed 1 1/2 bath 700 to 1200 sq ft starters on small lots. What i am seeing near me in Edmond for 1500 sq ft homes on small 6000 sq ft lots is $$ for what they get and I would not call them starters. Just my 3 cents. Sorry inflation.

[stlokc]

I agree with a lot of that. I am at the age where the first wave of my friends is starting to have kids in college. Apartments in college towns now have gourmet kitchens with granite countertops, private bathrooms for each bedroom, swimming pools, spas, "amenity spaces" and the like. Some of these kids eventually move back in with their parents after they graduate for a while. They never go through the "slumming" stage during school or in a first apartment or two. They think all places of residence should look like the house their parents worked 20 years for.

I know I am overgeneralizing but this has been a topic of conversation in my friend group of late.

[Pete]

Blame HGTV and Instagram.

Everyone wants a magazine-ready house.

[fortpatches]

It is a bit more complicated with apartments.

My partner and I have a starter house (i.e., complete fixer-upper) in the city and for a couple years had an apartment in Stillwater while he finishes his PhD. There was at least one student he taught in the same apartment complex - which had mold in the bathroom before we even moved in, the windows wouldn't completely seal and buffalo gnats would get in and bite him (causing allergic reactions), mold was growing from the AC registers, the outlets were all broken with chunks missing where you plug things in, there was literally a dead rat in the hallway for months, we replaced the fire extinguisher and smoke detector in the apartment since they wouldn't respond and correct the issue even though, per the lease, they were responsible for it, and this list just goes on. Hell, even the breaker panel had a recall from early 2000s for starting fires - as in if it were inspected, it would fail inspection.

It was so bad, I was looking at houses in the area to buy because I didn't feel safe with him living there. Sadly, that is what $500/mo gets you, the $450/mo apartment we found literally had part of the ceiling collapsing in. So why would someone not get a roommate or two and go for a $1,200-1,500/mo apartment? You each pay about the same amount as you would for a condemnable apartment, but you aren't exposed to the same health hazards.

[gjl]

I bought my first house in 1978 at the age of 23. 1160 sq ft 3 bedroom, 1 and 1/2 bath, brick with 2 car garage, 60x140 lot in Warr Acres. Cost was $35500. It was very affordable for me on a single person income with no kids. Using the inflation calculator here https://www.aier.org/cost-of-living-...EaApQAEALw_wcB that $35500 cost would be equivalent to $158000 today. I see a lot of similar houses today in that price range. And back in 1978 my interest rate on that house with a 30 year mortgage was 9.5% with 10% down with a FHA loan.

[Rover]

I am not an expert but the feeling I get is so many people want their first house to be like their parents move up house. What happened to starter homes? My first house was 700 sq ft 2 bed, 1 bath on 2 ac. It turned out to be a good deal. First it got me it to a house I could afford, second it was a place I could keep my horses, and third it was a great investment. It more then doubled the value in the two years I owned it. I was able to divide it up into lots and sold it to someone who build starter homes. I was able to take the money, move a bit farther out and buy 10 ac and build a bit larger home. Point being, your first home may not be exactly your dream home but it beats renting and builds equity. Most will not fall into the deal that i did. Still that starter home be it a small one bed or a small 3 bed is usually better then a rental. Maybe builders need to start building small 2 bed 1 1/2 bath 700 to 1200 sq ft starters on small lots. What i am seeing near me in Edmond for 1500 sq ft homes on small 6000 sq ft lots is $$ for what they get and I would not call them starters. Just my 3 cents. Sorry inflation.

Well done. But that takes patience, sacrifice, and compromise.... things not in abundance these days. Too many feel entitled to start at a much higher level and they don't understand and generally have little real appreciation for what their parents did to get to where they are. They don't know what they don't know.

[stlokc]

I bought my first house in 1978 at the age of 23. 1160 sq ft 3 bedroom, 1 and 1/2 bath, brick with 2 car garage, 60x140 lot in Warr Acres. Cost was $35500. It was very affordable for me on a single person income with no kids. Using the inflation calculator here https://www.aier.org/cost-of-living-...EaApQAEALw_wcB that $35500 cost would be equivalent to $158000 today. I see a lot of similar houses today in that price range. And back in 1978 my interest rate on that house with a 30 year mortgage was 9.5% with 10% down with a FHA loan.

The problem with that comparison is that for a $158,000 house (which I agree would be considered entry-level today) you need a $30,000 down payment. That can be a pretty hefty amount for a 23 year old, especially with student loans. I'm also not sure that starting salaries have risen at the same pace as the cost of housing.

[sooner88]

The problem with that comparison is that for a $158,000 house (which I agree would be considered entry-level today) you need a $30,000 down payment. That can be a pretty hefty amount for a 23 year old, especially with student loans. I'm also not sure that starting salaries have risen at the same pace as the cost of housing.

That's if you put the full 20% down, which is not a requirement. There's plenty of options out there to put less down and pay the monthly PMI until you're in a spot to put additional cash down, refinance, or ride out the PMI payments until you get to 20% equity.

[Bill Robertson]

The problem with that comparison is that for a $158,000 house (which I agree would be considered entry-level today) you need a $30,000 down payment. That can be a pretty hefty amount for a 23 year old, especially with student loans. I'm also not sure that starting salaries have risen at the same pace as the cost of housing.

I can see this. I really don't know how first time home buyers in their 20s have a shot. I was very lucky when I was that age. I'm very mechanical. I bought a 600sq ft house off of NW 19th & May for $6000 in 1978 when I was 19. Gutted and redid everything then lived there for a couple years. Sold it for $16000. Bought a 1200sq ft house on NW 34th & Hammond. Did pretty much the same but went on the make the one car garage a den and built an over sized two car garage. Lived there for a couple years and then doubled my investment. Bought a new house then. After leaving wife #1 I started the whole process over. But not everyone has the ability to do that.

[OkiePoke]

Some of that can be attributed to student loan debt.

[stlokc]

Some of that can be attributed to student loan debt.

Indeed.

I bought my first house at age 28 for $138,000. I was able to put the 20 percent down, but ...
I had had a pretty good job since graduation and the ability to save month over month for 5 years.
I did not have student loans.
I did not have health issues.
I did not have kids at an early age.

Even then it was tight.

I guess the above "shows my privilege" but many people don't get to have that confluence of factors. And in the 20 years since, the prices and the debt have only accelerated. In many respects, it's understandable that people in their 30s are just now in a position to buy for the first time.