Real Estate Market Update for Oklahoma City August 2020
A Quick Overview of Real Estate
The recent pandemic has changed and reshaped the real estate landscape, and it has not spared Oklahoma City. You may realize that there is not much recent content explaining the trends in real estate.
The fundamental factors that drive real estate performance still apply, and they even guide this analysis. Consider such issues as interest rates, property inventory, the average bottom line, demographics, and overall economic growth. So let’s see how Oklahoma’s real estate is changing.
Corona Virus Impact on Real Estate
The Coronavirus pandemic has put almost everything out of balance. In Oklahoma, we usually see an increase in inventory from around July or August, extending to September. The peak inventories happened in spring due to the Coronavirus. Some of the reasons include people taking their assets off the market and increased delisting. Despite the challenges that owners face, something unique is happening for buyers.
Most of them are still out there seeking to buy more as interest rates have taken a dip. Low-interest rates mean that the cost of loans has also decreased. It is easier to obtain a loan and fund a real estate purchase. Furthermore, tenants have problems with higher rents, which affects the demand for real estate, making it cheaper. So, for sure, buyers have held on tight and are out there despite the recent economic hardships.
The average conventional mortgages at the moment are 2.88% for a 30-year loan. The rate is incredibly low as it has gone down by a total percentage from 3.75% at the beginning of 2020. It’s a record low for rates.
Focusing on the Real Estate Inventory in Oklahoma
Our focus is on the monthly supply of inventory because we want to use the peak in guiding our understanding of the market. A more straightforward way to put it is to know how long it takes for the entire inventory to sell out if we don’t add any more for a month. As of August 10th, Oklahoma had 1.7 months of supply. It means that we have 1.7 months before we sell out. Comparatively, a good steady supply should be six months or at least three to four months. Things start to worsen at two months. So, 1.7 months is incredibly low.
The other surrounding towns around Oklahoma City metro provide a better picture of the situation. Moore is a particular case in this regard. It shows the tightest inventory for now. We see a 0.8 month supply in Moore, which is less than a month of inventory supply. We can expect more people to want to move into Moore, but not many Moore owners will be selling. The Midwest City is next with one month of supply.
We then move to Yukon, where it stands at 1.7 months. Mustang shows a similar level as they are kind of sister cities. Norman is even better with two months of supply and Edmond at 2.3. That explains a lot that we should know because we see record pullouts from multiple listing services, placing the total units below five thousand. Now that we understand the unique real estate changes we are facing in Oklahoma City, massive MLS pullouts indicate that the market may stagnate for a while.
When you see listings fall below five thousand, it means that we are at a record low. The lowest numbers for the great depression stood at about 7,500. We have recently seen dips of up to 4,400 units, which is incredibly low. The small units are across the board for Moore, Edmond, Yukon, Norman, Mustang, and the entire Oklahoma City. However, if you want to sell, there are many ready buyers. Conclusively, you can now decide where you fall in the market. As a seller, you will be able to sell your property quite easily. It seems like a great time to sell. As a buyer, you can leverage the cash supply to try and find something. The current situation does not mean that you won’t be able to buy it. We can see that; with this understanding, everyone can position themselves and make decisions that could improve their outcomes. Good luck! At Rock Realty, we strive to bring you similar updates and informative guides on real estate.