The oil “bust” during the past year had a slight effect on home sales prices and availability, but the bump was only temporary and the market has once again rocketed upwards. In 1984 we saw the bottom drop out of home sales after the oil bust. This year? Just a minor blip despite all the oil industry layoffs. That goes to prove that the OKC area economy has diversified in the past 30 years and is much more robust and not nearly as dependent on the energy industry. Home prices nationwide have mostly recovered to their pre-2008 housing crash levels because of the improved national economy and near record low interest rates. Edmond in particular is seeing a strong “seller’s market” develop. We see this in our day to day operations, where we often see multiple offers on homes that are priced fairly. We also see most sellers are able to get very close to their asking price, although they may have to pay buyer closing costs to sweeten the deal for a particular buyer.
As always a home that is priced fairly and shows well will disappear from the market quickly.
Oklahoma County Average Home Price Increases
Our last market report in February 2016 showed a decrease in the average sales price for homes in Oklahoma County. Since that time the prices have increased steadily, with a sharp increase in July. We are seeing this in our regular sales, as we see multiple offers on many homes in the past two months.
The days on market is a good indication of a balanced real estate market. A historical average of 60 days on market is considered a neutral market. As you can see the days on market increased to over 80 days in late 2015, but has steadily fallen to under 50 days, indicating a shift to more of a seller’s market. Still close to neutral but as mentioned above, we are seeing multiple buyer offers on many homes, especially those in the $200K price range.
The Edmond area market in particular has been strong during the summer of 2016. While time on market and prices dropped at the end of 2015, we have seen prices and sales recover during the spring and summer of 2016. Part of this is due to the diversified local economy, and part of it is due to record low interest rates. In fact, the Edmond market saw 241 homes sold in January 2016, while 429 were sold in June – a substantial increase. While the level of home sales in 2016 are still below the all time records 2014 and early 2015, the market is recovering from the drop in late 2015.
AP News reports that home sales nationwide are improving, with rising prices, fewer homes available to purchase, and increased demand. In fact, in some hard-hit markets like Arizona and Florida, prices have nearly recovered to their pre-2008 levels. They attribute this improved market to a much improved nationwide economy and record low interest rates.
This video from RE/MAX shows a quick summary of the national housing market for June 2016.