Let me start by saying that I expect the spring of 2013 to be the best time to sell a home in central Oklahoma in recent memory. There, got that out of the way for people who don’t want to read the details.
I can hear it now – “Yea, yea, we here that all the time.”
But really. This is going to be one of the best times in the past 5 years to sell your home. Let me explain why.
Interest rates continue to hover near their all time lows. The federal government is working hard to keep interest rates low to stimulate the economy (and to keep their huge debt payments from exploding out of control) and that means home interest rates remain at or near all time lows. Who remembers 12% to 15% interest rates? I do! Heck, I was doing the happy dance when they dropped to 7% just a few years ago. Now we are consistently seeing rates on 30 year fixed mortgages around 3.5%. Wow. That is almost free money.
Stock Market Sets Records
The Dow Jones Industrial Average just hit record highs last week, finally recovering from the crash of 2008. That means people have more money to spend and more equity in their stocks, plus more confidence in the market.
Natural Gas Prices on the Rise
While natural gas prices have been depressed because of the gut of supplies, we are slowly starting to see prices rise. This is really good news for the Oklahoma economy. It puts more people to work and hence creates more demand for homes in the area.
Continued Strong Oil Prices
Oil prices continue to be high compared to historic levels. While this hurts us all in the pocketbook, it is definitely good for the Oklahoma economy.
Record 2012 Home Sales
All of these factors resulted in record home sales in central Oklahoma for 2012. We sold more homes in Edmond than ever before, at the highest average price in history.
Lack of Home Inventory
These record home sales in the metro OKC area, along with the slowness of builders to ramp up new home starts, means that the inventory of available homes for sale on the market is very low. We see that every day as we search for homes for buyers. The result is homes are selling quicker, at stronger prices, and good homes are snatched up quickly. This doesn’t mean the housing market is inflated or you are going to get well above market value for your home. Home prices don’t explode anymore because appraisers are required to use past home sales to create comps for current home sales. In a rising market, this means that buyers sometimes are willing to pay more than a home will comp for, but banks won’t loan on a home without solid comparables. Hence this tends to keep pricing from exploding in a hot market. Which makes the inventory even tighter and home sales quicker. We are now seeing more multiple offer situations, especially in the latter part of 2012.
All of these factors – the strong growing local economy, low interest rates, the spring selling season, and the dearth of new homes coming onto the market – means we expect spring 2013 to be one of the best times in recent memory to sell your home in central Oklahoma. If you need a realistic valuation on what your home is worth, give us a call. We sell hundreds of homes and land each year and can help you with selling yours.