Oklahoma real estate is still GOOD. Living and working in Edmond daily confirms that we should not worry. Overall, compared to last year all sales are up and as a Realtor it is looking pretty smooth.
Pricing trends for the South for a median existing single-family home was $148,200 in the first quarter, up 1.1 percent from the first quarter of 2009. On the other hand, existing-home sales in fell 14.6 percent in the first quarter to an annual rate of 1.89 million. Although these existing-home sales are 10.7 percent higher than a year ago which is wonderful. We all need to keep thinking positive though and continue to read to see why.
In May, pending home sales in the South jumped 12.7 percent, which is 28.3 percent higher than March of 2009. This tells us that the tax credit clearly help stabilize the market. Do not be sad though if you are a first time home buyer and missed the tax credit. These all time low interest rates enable a buyer to afford more now than in April, before the tax credit was over. Or just have a smaller payment which is better overall in the future. If you bought a $350,000 house with a $280,000 mortgage in April your payment would be around $1560 with an interest rate of 5.34% on a 30 year conventional loan. Today with the same scenario, but a rate of 4.625% your payment would be $1440. That would be an annual savings of $1467 and right at $44,000 over the 30 year note. WOW! Hopefully, the public will continue to think positively and want to keep moving from here to there especially while the interest rates are where they are now- about 4.5%.
On a different note, 11% of Realtors reported contracts being canceled because of appraisals coming in low, so as Realtors we have to stay on top of pricing homes and the price our clients are paying/offering for homes. This is something the public does not think of which makes having a licensed Realtor assist you in the sell of your home well worth it!
Lastly, there is more availability for jumbo loans and second home mortgages, so call us today if you have any real estate needs. Have a good week!
Sources: NAR, Realtormag, and Informa Research Services