No bargains in this basement
Home sales booming on short supply
EDMOND — Homebuyers are rushing up a down staircase: Sales are booming, supply is in the basement, and sellers have the upper hand in negotiations.
The Edmond-area market — Edmond, Deer Creek, and Oakdale public school districts — provides a look at the hottest seller's market here in at least a generation, if not ever.
The area had “a bunch of firsts,” last month, said Brian Preston, broker-owner of of RE/MAX at Home, 3224 S Broadway Ave., No. 225.
“June 2020 was an all-time high for the number of closings in a single month with 549. We have hit 500 only twice before, both times last year. This has put this year 23 transactions over last year's record-setting pace,” he wrote this week in his monthly Preston Report and blog at www. edmond4sale.com.
The Edmond area had 2,316 sales in the first half of the year, compared with 2,293 the first six months of 2019, a scant 1% increase.
“But( with) all we have been through, to be ahead of last year at all is a blessing,” Revard
Preston wrote.
Another first: more than 900 pending contracts — 922 to be exact. May
ended with 886 sales waiting to close.
“Last month's record didn't last long,” Preston said.
Another first: Edmond ended June with just 978 homes on the market, fewer
than 1,000 for the first time in Preston's 21 years of compiling his report.
“We have almost as many homes under contract as we do available properties to buy,” he said.
“If they all close, we would have a one-month absorption rate,” Preston reported, meaning the length of time it would take to sell every house listed with a Realtor in the Edmond market arrea. “Even with the current closings, we have under a two-month absorption rate.”
Across the metro area, inventory of homes listed with Realtors slipped to 1.7 months in June, down from 1.8 months in May, according to the Oklahoma City Metro Association of Realtors. That includes statistics for Oklahoma City, Arcadia, Bethany, Blanc hard, Choctaw, Deer Creek, Edmond, Harrah, Luther, Midwest City, Moore, Mustang, Newcastle, Nicoma Park, Norman, Piedmont, Tuttle, Warr Acres and Yukon.
The metro area had 2,512 new listings — up 10.7% compared with June 2019 — and closed sales were up 11.2% year over year, the Realtors reported.
Houses sold faster, in 32 days on average, six days quicker than in June of last year. Zillow said Friday that in the week ending July 4, in Oklahoma City it took just nine days from listing a house for sale to signing a contract.
The median price was $206,634, up 3.4% from May and up $4.2 compared with June 2019, the Realtors said.
Bidding wars are common, especially for houses in the hottest price ranges. What is a buyer to do?
Buyers in a seller' s market should consider houses t hat have been listed longer, said Kelly Heaton, a Realtor and agent with Lime Realty, 5909 Northwest Expressway, Suite 325. Sellers with older listings are more likely to budge on price. Heaton said buyers can use digital technology to arm themselves with detailed market information.
“Many buyers are getting real-time updates on new listings,” Heaton said. “I encourage frustrated buyers to expand their search and consider homes which have been on the market for more than 30 days.”
Buyers need to be prepared to act fast, she said.
“Look at listings every day. Talk to your lender ahead of time to determine what you can afford to put down,” Heaton said. “You need to be ready to make a quick move when a home hits the market, and you need to be decisive.”
During negotiations, she said, buyers should work to stand out from otherbuyers, perhaps by making an offer above listing price, writing a personal letter to a seller, or not making excessive demands for repairs.
The surge in p urchases, partly fueled by persistently and historic low home loan rates— right at 3%, according to Freddie Mac — comes even as “the COVID-19 crisis has greatly impacted homeownership,” said Mark Revard, executive vice president at Jenksbased Gateway First Bank, which has branches at 6832 N Robinson Ave. in Oklahoma City, 1931 W 33rd St. in Edmond, and 2405 Palmer Circle, Suite 200,in Norman.
“As the nation maneuvers these historic and difficult times, we all recognize the COVID-19 crisis has put extra stress on our customers. At the same time, we are seeing an increased number of homeowners refinancing and taking advantage of lower interest rates, so everyone in the industry is working harder than ever. In addition to their day jobs, many loan processors and underwriters are now also stay-at-home parents, teachers and chefs.
“April and May were record-setting. For the first time, we hit over $1 billion in residential mortgage loans.”