As the leaves begin to change, the Oklahoma City real estate market is experiencing its own seasonal shift. Whether you’re a potential buyer eyeing your dream home or a seller considering listing your property, understanding the current market trends is crucial.
Let’s dive into what Fall 2024 has in store for Oklahoma City’s housing market:
What’s Happening in the Oklahoma City Housing Market?
The Oklahoma City real estate landscape is evolving, presenting unique opportunities and challenges for both buyers and sellers. Here’s what you need to know:
Increased Housing Supply: Compared to last year, there’s a modest uptick in homes for sale, offering more choices for buyers. This shift in housing inventory could ease some of the competitive pressure that has characterized the market in recent years. More homes on the market can also mean less urgency for buyers, giving them the luxury of time to carefully consider their options without the fear of missing out.
Moderate Price Appreciation: While home prices in Oklahoma City are likely to continue rising, the rate of increase is anticipated to slow down. This is good news for buyers concerned about affordability, and it signals a more balanced market overall. A slower rate of appreciation means buyers might not have to stretch their budgets as much as they would have in previous years, making it easier to enter the market or upgrade to a larger home.
Shift Toward a Balanced Market: The market is gradually moving away from being heavily seller-favored. This shift could allow buyers more room for negotiation, making it easier to strike favorable deals for both parties. In a balanced market, buyers and sellers have equal leverage, leading to fairer and more equitable transactions. This environment can also foster a healthier real estate market where neither party feels overly pressured or disadvantaged.
Lower Mortgage Rates: Mortgage rates are expected to continue their downward trend, making homeownership more affordable for potential buyers. Even a small drop in rates can significantly affect your buying power, making this a great time to buy a home. Lower interest rates can reduce monthly mortgage payments, making it easier for buyers to qualify for loans and afford homes in more desirable neighborhoods.
Seasonal Factors: Fall traditionally sees an increase in buyer activity as families look to settle in before the holidays. While there may be competition for homes in desirable neighborhoods, the election cycle also makes it a great time to take advantage of decreasing mortgage rates! First-time homebuyers should consider taking advantage of this marketplace. Additionally, sellers might find that this period motivates buyers to close deals before the end of the year, potentially leading to quicker sales and fewer concessions.
Price Trends: While house prices continue to appreciate, the rate of increase is slowing. As of August 2024, the median home price in Oklahoma City stands at $263,000, reflecting a 6.3% year-over-year decrease. This trend suggests that the market is cooling slightly, but not to the extent that would indicate a major downturn. Sellers should consider these changes and price their homes competitively to attract serious buyers.
Days on Market: Homes are taking slightly longer to sell, averaging 23 days on the market compared to 17 days last year. However, the right real estate strategy can help you sell your home quickly, even in this market. This slight increase in days on the market could indicate that buyers are taking more time to make decisions, possibly due to the larger inventory and less intense competition. Sellers should focus on making their homes stand out by enhancing curb appeal or offering incentives like paying for closing costs.
What This Means for Buyers
Buying a home is a substantial financial decision. If you’re in the market to purchase a home in Oklahoma City this fall, here’s what you should keep in mind:
More Options: With a slightly higher inventory, especially of single-family homes, buyers may have more options when searching for a home. This is an excellent time to explore different neighborhoods and find a home that meets your needs. More options mean buyers can afford to be more selective, considering factors like proximity to work, school districts, and community amenities without feeling rushed.
Potential for Negotiation: Work with a qualified real estate agent who can help you navigate this more balanced market and get the best house in your budget. A skilled agent can provide insights into the local market dynamics, helping you make informed offers that are competitive yet leave room for negotiation. This could include negotiating for seller concessions, like paying for repairs or contributing to closing costs.
Affordability: The expected decline in mortgage rates from the Federal Reserve could make homeownership more attainable. Lower interest rates reduce your monthly payments, allowing you to afford a more expensive home or save money on interest over the life of your loan. This is particularly advantageous for first-time homebuyers who might otherwise be priced out of the market.
Competition: Despite the market shift, many homes still receive multiple offers, especially in desirable neighborhoods. Be sure that your agent can help you navigate these situations to secure the home of your dreams. In competitive scenarios, having pre-approval from a lender and being prepared to act quickly can give you an edge over other buyers.
Consider Closing Costs and Property Taxes: Remember to factor in closing costs and property taxes when budgeting for your new home. These can add significantly to your overall costs, so planning and discussing these with your agent is essential. Closing costs can include fees for loan origination, appraisal, title insurance, and more, often totaling 2-5% of the home’s purchase price. Property taxes vary by location and can impact your monthly mortgage payment, so it’s important to understand the tax rates in your chosen neighborhood.
What This Means for Sellers
For those considering selling their Oklahoma City home this fall:
Strong Demand Still Present: Strong buyer interest in well-priced and marketed homes remains high. Ensuring your home is competitively priced and presented in the best possible light is essential. Even in a more balanced market, homes that are well-maintained and appropriately priced can attract multiple offers, leading to a quicker sale and potentially higher selling price.
Important to Price Strategically: Accurate pricing is crucial in a market where buyers have more options. Your real estate agent can help you evaluate the research and understand the strategy behind your home’s listing price. Overpricing can lead to extended time on the market and necessitate price reductions, which can give buyers leverage in negotiations.
Consider Fall Staging: Fall is a season that evokes warmth and coziness. Consider staging your home with autumn decor to appeal to buyers looking to settle in before the holidays. A well-staged home can significantly affect how quickly and successfully it sells. Simple touches like adding seasonal flowers, warm lighting, and cozy throws can make your home more inviting and help buyers envision themselves living there.
Addressing Potential Buyer Concerns: Sellers should be prepared to address common buyer concerns such as the condition of the roof, HVAC systems, and plumbing. Preemptively tackling these issues by getting a home inspection before listing can smooth the sales process and prevent last-minute surprises that could derail a deal.
The Value of a Local Real Estate Expert
Navigating the nuances of the Oklahoma City housing market requires expertise and local knowledge. An experienced real estate agent can provide invaluable insights beyond the general statistics, help price your home correctly, and guide you through the negotiation process.
Why Local Knowledge Matters: Real estate is highly localized, meaning market conditions can vary significantly from one neighborhood to another. While national trends provide a broad perspective, your local Oklahoma City real estate expert can offer the specific, actionable insights you need to make informed decisions and make the most of current market conditions. A local expert will understand these micro-markets, including school quality, future development plans, and neighborhood reputations. This knowledge can help buyers find hidden gems, and sellers position their homes more effectively.
Leveraging Technology in Real Estate: Today’s real estate market is increasingly driven by technology, with buyers starting their home searches online. A savvy agent will use digital tools like virtual tours, high-quality photography, and social media marketing to showcase your home to a broader audience. This can be particularly important in attracting out-of-town buyers who cannot visit in person.
Understanding the Legal Landscape: The real estate landscape has been evolving since the recent National Association of Realtors lawsuit. While we’re not seeing significant impacts directly affecting buyers and sellers, this situation underscores the importance of proper client education. Sellers should understand that compensating a buyer’s agent can help them achieve a higher sale price by attracting more qualified offers. On the buyer’s side, it’s crucial to be aware that signing a buyer-broker agreement is not just a recommendation but a legal requirement. This can be confusing, especially for those active in the market before these changes were fully enforced.
Planning for the Future: With the market evolving, some may wonder about the possibility of a housing market crash. However, the Oklahoma City market remains stable. While price appreciation is moderate, the market’s fundamentals—such as steady demand and low mortgage rates—suggest continued stability rather than a downturn. Working with an agent who can help you plan for different market scenarios will prepare you for the future.
Looking Ahead
The Oklahoma City real estate market is expected to remain robust, with steady price increases and a balanced demand-supply dynamic. New home constructions are on the rise, adding to the options available for buyers.
As we move through Fall 2024 and look toward the future, working with a knowledgeable real estate agent can make all the difference. Whether you’re considering the closing costs, navigating property taxes, or making strategic decisions about your personal finances, having an expert by your side ensures you’re making the most informed decisions possible.
