Predictability's Out the Window

August 23, 2010 by Ryan Hukill

The title says it all… there’s really no other way to sum up what’s happening in the Oklahoma City real estate market lately.

For the past year, although certain aspects of the market have been unpredictable, we’ve seen fairly-steady growth, and respectable levels of home sales in the OKC metro, especially in comparison with the rest of the country. With that in mind, most of us headed into Summer anticipating that a time which is traditionally a busy few months would be just that, busy.

Yes, we knew that the largest stimulus in the the history of our country was coming to an end, but absorption rates were healthy and interest rates were at unprecedented lows (and still are), and the next few months are that time of year when the kids are out of school and many people are ready to make their move.

We were wrong. Surprisingly enough, that summer rush of sales took a vacation this year. According to the latest OKC metro real estate statistics, the number of homes sold in July was down 33% from July of 2009, following a June which was also down from last year.

Tougher appraisals and lending guidelines certainly haven’t made it easy for folks to buy, and weak economical news plays a factor too, but let’s not get all doomy & gloomy here. As far as I know, the end of the world isn’t coming, and the real estate market isn’t completely dead. In fact, in every market shift, there are opportunities for someone to capitalize.

My advice?

Buyers: Remember those historically-low interest rates I mentioned above? Those, in combination with a market that’s liable to freak a few sellers out, will work to your favor if you’re a buyer with the resources to pull the trigger right now.
Sellers: It’s more important now than ever before to make sure that your home is in better condition than the others on the market, and that you’re priced more-competitively than them, so that yours is one of the homes that sells, rather than sitting on the market and riding it downward if that’s where it goes.

Yes, it’s that simple. No need to freak out, just a time to evaluate your situation and see if you’re poised to benefit from this down-turn, or if staying put for a while is your better strategy.