Home sales have certainly heated up this summer and buyers are getting scorched by skyrocketing prices brought on by strong demand, limited availability, and increasing building costs.
According to the Oklahoma City Metro Association of Realtors, the average price in May was $271,611, up 20.2 percent from May 2020. The median price, $233,900, was up 17% from the previous year.
Multiple-offer competing bids are essentially the rule with just an 18-day inventory of houses on the market. Plus persistently low mortgage interest rates, offering would-be buyers offers they can’t refuse, is making matters worse.
So What Can Oklahoma City Home Buyers Do?
One solution, according to experts, is to buy a new home.
According to Dharma Inc.’s Builder Report, builders began 2,824 homes through May, a 26 percent increase over the first five months of 2020. With more new homes planned in the near future.
Home builders, material manufacturers, and suppliers stopped temporarily at the onset of the pandemic, but quickly reopened, igniting a boom fueled by ultra-low mortgage rates.
Some basic construction supplies are still taking an unusually lengthy time to arrive, which has slowed some new builds from breaking ground. Which means many builders are weathering the ups and downs of the boom one day at a time.
But builders who have adapted are busier than ever, despite the price volatility and delays. This equates to more opportunities for buyers.
“We’re continuing to start more homes each month than ever before in our company’s history,” said Erin Yarbrough, director of marketing for Ideal Homes & Neighborhoods. “This will support both the significant demand, as well as a growth of new neighborhoods.”
“Several neighborhoods in which we build have home sites available to custom build, but most neighborhoods are currently out of new lots. We’ll be opening three new sections this summer to keep up with demand for more custom lots and more sections in the fall. Brand-new Ideal neighborhoods will be coming to Deer Creek, Harrah and Stillwater likely within the next year.”