There is both good news and bad news to share concerning the 2018 Oklahoma housing market. While the state doesn’t seem to have the same difficulties with the decrease of homes available as other states do, Oklahoma’s real estate market will have its share of issues in the coming months. To find out if it is a good time for you to sell your family home, or look for a new place to live, check out the statistics listed below.
Good News for the 2018 Oklahoma Housing Market
The Oklahoma housing market got plenty of good news in November of 2017 when the sales of new homes increased by 17.5%. That was the break that the selling market needed for a long time. Local building contractors reported that they were selling newly constructed homes before they were even built. And according to the Wall Street Journal, the nation was enjoying the effects of a strong housing market at the time.
Homeowners who are looking to sell in 2018 still have the odds in their favor with the demand for available homes is still very high. This allows sellers to have multiple buyers interested in their properties which provides them with a higher than usual final sales price. Homes all throughout the country were spending a record low amount of time on the market as buyers were eager to find their dream home.
The recent tax break also means good news for the national real estate industry. Many wage earners have seen bigger paychecks since early February. And if buyers react accordingly, the Oklahoma housing market should benefit from this positive change. Obviously, with more people earning better wages, there will be more families looking to buy a new home.
The Downside of the 2018 Oklahoma Housing Market
With so much good news in the housing industry, it can be difficult to imagine that the housing market may suffer at the same time. Although making homes more affordable is a step in the right direction, there is the increase in mortgage interest rates to consider.
Potential buyers may be more inclined to purchase a home now that there are more entry-level properties available in Oklahoma. But interest rates are expected to jump up by the end of the year, causing many of those buyers to back out as home loans become less manageable for their budgets.
The rise in interest rates will influence both the buyers and seller’s markets. If you are planning to buy or sell within the next few months, it would be in your best interest to get an early start.
Why Real Estate Investors Should Have a Positive Outlook
While the interest rates are expected to rise all throughout the country by the end of 2018, currently they are still relatively low. Buyers should take advantage of this benefit before its too late. Those who understand how quickly the interest rates will rise will be more eager to hurry and buy a home while they can still lock in a low rate with their bank.
This rush to beat the dreaded high-interest rates could cause the Oklahoma housing market to see a significant increase in sales in the coming months. It could also cause the demand for affordable housing options to be much higher as the less expensive properties are likely to go first. Right now, Oklahoma home buyers have a short window of time to act in before its too late.
The game-changer prediction for the Oklahoma housing market in 2018 expects for supply to finally catch up with demand before the year is over.
These predictions come from The National Association of Realtors who believe that the limited housing inventory will continue throughout the first half of the year. Then the issue will ease up during the second half. While it may be an unusual prediction, if it comes to pass, it will mean good news for both buyers and sellers in Oklahoma.
If the events of the coming year prove to be effective for the Oklahoma housing market, January 2019 should be the start of another promising year with many new homeowners in the area.
The Oklahoma Housing Market Overview for 2018
According to statistics found on Zillow, the average value of a home in Oklahoma is $116,869. The estimated value of homes has gone up 4.7% throughout the past year. The average list price of a home in the state is $178,900, while the average sales price is $136,100.
The average list price per square foot for homes in Oklahoma is $99. That is a substantial leap from the average amount in January 2012, which was $77 per square foot.
Zillow’s statistics show Oklahoma’s current Market Health is on the decline with a score of 3.0 out of 10. Homes stay on the market on average for 104 days and the amount of properties with negative equity is at 11.7%. However, the numbers are expected to rise soon as more buyers work to take advantage of the lower interest rates.