What Are Experts Saying About the Fall Housing Market?
The Oklahoma housing market is rapidly changing from the peak frenzy it saw over the past two years. That means you probably have questions about what your best move is if you’re thinking of buying or selling this fall. To help you make a confident decision, lean on the professionals for insights. Here are a few things experts are saying about the fall housing market. Expert Quotes for Fall Homebuyers A recent article from realtor.com: “This fall, a more moderate pace of home selling, more listings to choose from, and softening price growth will provide some breathing room for buyers searching for a home during what is typically the best time to buy a home.” Michael Lane, VP and General Manager, ShowingTime: “Buyers will continue to see less competition for homes and have more time to tour homes they like and consider their options.” Expert Quotes for Fall Sellers Selma Hepp, Interim Lead of the Office of the Chief Economist, CoreLogic: “. . . record equity continues to provide fuel for housing demand, particularly if households are relocating to more affordable areas.” Danielle Hale, Chief Economist, realtor.com: “For homeowners deciding whether to make a move this year, remember that listing prices – while lower than a few months ago – remain higher than in prior years, so you’re still likely to find opportunities to cash-in on record-high levels of equity, particularly if you’ve owned your home for a longer period of time.” Bottom Line Mortgage rates, home prices, and the supply of homes for sale are top of mind for Oklahoma buyers and sellers today. And if you want the latest information for our area, let’s connect today.
Why You Should Consider Condos as Part of Your Home Search
The historically low inventory over the past few years led to challenges for many Oklahoma buyers trying to find a home that met their needs and their budget. If you’re in the same boat, you should know the recent shift in the Oklahoma housing market may have opened up doors for you to restart your search. The inventory of homes for sale has increased this year, and that’s giving buyers much needed options. As Danielle Hale, Chief Economist at realtor.com, says: “. . . today’s shoppers have more than 5 homes to consider for every 4 they had at this time a year ago.” But perspective is important. Overall, housing supply is still low. If you need even more choices, expanding your search by adding additional housing types, like condominiums, could help. Exploring Condos Could Add Options That Fit Your Budget One thing to consider is condos generally differ from single-family homes in average space and floorplans. But that size difference is one reason why condos can be a more affordable option. According to a recent report from realtor.com, condo buyers paid roughly 7% less for their home than buyers of other housing types last year. With rising mortgage rates and home prices, the relative affordability of a condo could be worth considering. Remember, your first home doesn’t have to be your forever home in Oklahoma. The important thing is to get your foot in the door as a homeowner. Buying a condo now can springboard you into a bigger home later on. An article from the Urban Institute explains: “Because condos and co-ops are generally more affordable, they tend to help first-time homebuyers step onto the first rung of the homeownership ladder. These buyers often use the equity on their condo to then purchase a larger single-family home.” In other words, owning a condo will help you start building wealth in the form of home equity. In time, the equity you build can fuel a future purchase should you decide you want to buy a home with more space or different amenities. Condo Living Provides Several Great Perks Boosting the number of options in your budget during your home search is just one reason to consider condos, but there are several other benefits to condo living. First, they tend to require minimal upkeep and lower maintenance – and that can give you more time to spend doing the things you enjoy. A recent article from Bankrate highlights this, saying: “Condos can be a good option for anyone who wants to keep home maintenance to a minimum . . . if the roof is leaking or the carpet in the lobby needs to be replaced, that’s not your responsibility — the condo association handles those duties.” Plus, since many condos are located in or near city centers, they offer the added benefit of being in close proximity to work and leisure. Again, realtor.com explains: “Buying a condo, which is generally less expensive than a single-family home, enables a household to afford to own in the middle of it all, and often means a newer-built home with less maintenance responsibility.” Ultimately, owning and living in a condo can be a lifestyle choice. And if that appeals to you, they could give you the added options you need to buy your first home in Oklahoma. Bottom Line Adding condominiums to your housing search could be a great move. If you’re ready to search condos in our area, let’s connect today.
What Experts Say Will Happen with Home Prices Next Year
Experts are starting to make their 2023 home price forecasts. As they do, most agree homes will continue to gain value, just at a slower pace. Over the past couple of years, home prices have risen at an unsustainable rate, leaving many to wonder how long it would last. If you’re asking yourself: what’s ahead for the price of my home, know that experts are now answering this question, and its welcome news for Oklahoma homeowners who may have been led by the media to believe their home would lose value. Historically, home prices have appreciated at a rate near 4%. For 2023, the average of six major forecasters noted below is 2.5%. While one, Zelman & Associates, is calling for depreciation, the other five are calling for appreciation. The graph below outlines each expert forecast to show where they project home prices are going in the coming year. To understand why experts are calling for appreciation next year, look to the economics of supply and demand. Dave Ramsey, Financial Expert, says this: “The root issue of what drives house prices almost always is supply and demand . . .” Two things are driving home prices upward. First, the undersupply of homes on the Oklahoma market is an issue we continue to face in this country. We still don’t have enough homes on the market for the number of people that want to buy them. To further that point, we’re still in a sellers’ market nationally, and in that scenario, home prices tend to appreciate. Second, millennials are moving through their peak homebuying years. Since they’re the largest demographic behind the baby boomers, demand isn’t going away any time soon. Bottom Line Experts are calling for Oklahoma home prices to appreciate next year, although at a slower pace than the previous three years. The reason for this is simple. The dynamics of supply and demand are playing out in real estate and will continue for many years to come.
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