OKLAHOMA CITY – Some places people call home today have changed in response to market challenges.
âWe are seeing a lot of changes in what people buy and rentâ¦ due to the lack of inventory,â residential real estate investor Angelena Harris said at the press conference. a recent JR / Now webinar.
Log recording Editor-in-Chief Joe Dowd moderated the discussion with Harris, Management Broker at Spearhead Realty, and Monty Strickland of Realty Experts.
Harris said August listings for single-family homes – which numbered nearly 7,000 in 2020 – were down 47% this year to 3,298. The average number of days on the market fell from 37 to 17.
Strickland said the pandemic resulted in “one of the biggest real estate boom markets we’ve ever had.” While home sales normally drop as the holidays approach, the market has only slowed slightly this year, he said. Sellers continue to receive several offers for homes, but not as many as during the summer.
The MLS (Multiple Listing Service) database that covers the vast majority of Oklahoma currently has approximately 3,200 to 3,400 listings. That’s it from a $ 6,000 property to an $ 8 million property, Strickland said.
âWe’re seeing an increase in sales of townhouses and condos that we haven’t seen in the past just because they can’t get single-family homes at an affordable price,â Harris said.
Supply chain issues have also affected the housing inventory. Some builders have moved to smaller residences like tiny houses or urban infill projects, Harris said. âThey can’t get the materials they need to build – that’s the biggest problem – so some of them are looking for alternative methods to building. “
Another factor is that people are banking on the east and west coasts and come to Oklahoma, where they are paying cash for homes because the price per square foot is considerably lower, experts said.
For $ 300,000 or $ 400,000 in Oklahoma City, they can get a really nice house, much nicer than the one they’re moving to, Harris said.
âThey come from all over the place,â said Strickland, who has had clients from California, Florida, South Carolina, Austin and Chicago in recent months. âWe see it a lot. â¦ We are still seeing a lot of activity for the asking price.
Over the past four months, sellers have consistently received 100% or more of the asking price, he said. Historically, sellers get 95% to 98%.
âIt’s a fantastic time to sellâ¦ because the median has risen so much even since January 19,â Strickland said. “It has increased almost $ 50,000 in the Oklahoma City metro area.”
Harris said several agents in his office are working with out-of-state investors and 1,031 exchange buyers who buy homes over $ 200,000 “to rent them out and park their money for a while … and Oklahoma is a safe place during inflation. this.”
They pay cash and bid 5% off the asking price to make sure they get the house because they have to move their money quickly so they don’t have to pay taxes on it, she said.
The situation has made it difficult for local buyers to compete, especially first-time homebuyers, Strickland helps. “It just created different obstacles and different obstaclesâ¦ that we have never encountered before.”
Harris said the rental investor market is not slowing down. âWe have a significant shortage of rental property inventory across the United States and I can certainly see it in our local market. People can’t find places to live, âshe said. This is in part due to the shortage of rental housing.
Out-of-state syndications are buying or building apartments because interest rates are low, she said. Typically, they sell them in five to 10 years for a profit.