Falling mortgage rates could boost OKC home sales, but not yet

By Realestates News On Oct 13, 2024

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Keri Gray, broker and owner of KG Realty, has this home on 5 acres at 13130 W Memorial Road near Yukon listed for $615,000. The 2,915-square-foot home, built in 1996, has four bedrooms, two bathrooms, and one half-bath. PROVIDED BY KG REALTY

OKC home sales slumped more in November, and the supply crept up again with so many sitting unsold − slowing both month to month, which can be explained by the usual decline toward the end of the year, and year over year, showing the persistence of malaise in the market.

That’s with some relief lately from dipping interest rates, but the full effect of that probably won’t be felt until next year unless they trend up again.

The national average home loan rate this week was 6.67% for the traditional 30-year, fixed-rate mortgage, down from 6.95% last week, Freddie Mac reported Thursday. It was below 7% for the second week in a row after 17 weeks higher.

“Lower rates are bringing potential home buyers who were previously waiting on the sidelines back into the market and builders already are starting to feel the positive effects,” said Sam Khater, Freddie Mac’s chief economist.

Some buyers have given up on 2023, said Keri Gray, broker and owner of KG Realty.

“I have a lot of clients looking to move in 2024, but as for 2023, it has been my slowest year on record,” she said. “Buyers are waiting for the bottom to fall out because they are wanting ‘deals.’ I do not think these ‘deals’ are going to be what we saw in the mid 2000s.”

The new year could take some of the advantage away from home sellers

The new year will bring a better market for buyers, said Emily Frosaker, an agent with West + Main Homes in OKC’s Paseo Arts District.

“The hopeful buyers who have been waiting on the sidelines for rates to drop are beginning to think about a plan and get pre-approved to enter 2024. We are expecting a busy new year and spring,” she said.

What happened with home sales, prices, and inventory in the OKC metro area

In November, according to the Oklahoma City Metro Association of Realtors’ Multiple Listing Service, MLSOK:

Sales were down 10% compared with October, and down 7.3% year over year, with 1,123 transactions.
Inventory was nearly flat, but grew 0.3% month to month, with nine more homes listed with Realtors, and 23.5% year over year, to 3,367, a supply to last 76 days if no more were listed. That’s 2.5 months. A supply of five to seven months is regarded as a balanced market, with neither buyers nor sellers having the upper hand in negotiations.
The average price gained 0.6% month over month and 3.7% year over year, to $312,793.
The median price, considered a better gauge because it discounts extremes, ticked up 1.2% month over month and 1.6% year over year, to $263,000.