Sellers’ market
Limited supply and strong demand kept home prices up and gave sellers the edge in 2017.
Limited supply and strong demand kept home prices up and gave sellers the edge in negotiations in 2017, according to a yearend report from MLSOK, the Oklahoma City Metro Association of Realtors’ multiple listing service.
Low unemployment and high consumer confidence should keep sellers in control in 2018 despite pockets of surging construction in some parts of the metro area and uncertainty over the effects of tax reform, Realtors said.
Home prices rose last year, with the median increasing 2.3 percent to $163,000 in the area covered by MLSOK, which ranges from Shawnee to Altus and southwestern Oklahoma.
Sales increased 4.8 percent for a total of 26,642, and the number of houses listed for sale over the course of the year grew 7.9 percent for a total of 33,276, the report shows.
The year ended with 7,525 homes on the market, a 3.6-month supply, below what is considered a balanced supply of four to six months.
Houses sold as fast on average in 2017 as in 2016: in 56 days.
“It’s a sellers’ market. Sellers currently hold the keys in the buyer-seller relationship,” the Realtors said.
However, the report said, “Consumers are definitely purchasing for the first time and relocating to other, presumably more ideal homes, but home supply was still slightly lower than desired in 2017.”
The number of house showings went up 1.3 percent, for 335,143 in all, which meant houses were shown to a prospective buyer an average of 11.6 times before going under contract.
Loren Coburn, who was president of the MLSOK board of directors for 2017, said sales softened a bit late last year after a run-up in pricing.
But high demand boosting building in the Deer Creek area of northwest Oklahoma City, the county, and Edmond, as well a surge in northeast Edmond around Arcadia, kept things humming, said Coburn, an agent with Kevo Properties’ branch in Norman.
Buyers are able to purchase, although there are some concerns about affordability, said Katrina Washington, owner of Stratos Realty, 5909 Northwest Expressway, Suite 530.
In some areas where out-of-state investors dominate, they have pushed up prices by flipping houses. If they can’t get the margins they’re used to in other markets, they turn would-be flips into rentals. Local property owners complain that pockets of absentee rental owners push down rent rates.
For 2018? Tax reform clouds crystal balls.
“Some observers warn that there might be enough lack of incentives to stifle homeownership, which is already near 50-year lows,” according to the report, which is available at www.okcmar.org/mls/mlsresources. Policy makers claim that the reforms will help boost economic activity and profitability.
“Whichever direction we ultimately turn, the next year appears to offer a dalliance with balance intended to intrigue both sides of the transaction toward a common middle ground.
“For those who have their minds made up to buy a home in 2018, it will likely be a competitive ride. The trend has widely been toward fewer days on market and fewer months of supply, indicating strong demand despite higher prices and low inventory. This could prove tricky for firsttime homebuyers, especially for those who are impacted by student loan debt, content to rent, or among the more than 15 percent of adult children still living at home.”