“Turning a boring topic into fun.”
March 4, 2019
Each Monday when there is real estate news to report, I will write a short commentary on my view of our market. Sometimes it will include other economic commentary. It is not designed to be political or promoting anything but the American Dream of Home Ownership.
National: The U.S. economy remains growing with inflation contained. The Federal Reserve which analyzes various economic indicators and sets short term interest rates held rates steady at their last meeting. Their statement following their meetings sent a strong signal no more increases in interest rates soon.
The economy is doing well in most areas. One troubling area which could affect real estate is the big drop in purchase activity in the three big states of California, Florida, and Texas. This is especially true in higher priced houses. Each of those states have had an affordability problem with previous jumps in home values.
Around most of the country decreases in home prices, a higher supply of homes on the market after several months of slow sales, and decreased interest rates should spur increased home sales this spring.
Local: The Kiplinger Letter surveyed home prices in the 100 largest metropolitan areas as of December 31, 2018. The Oklahoma City metropolitan area ranked in Category 1 for most affordable housing. Only ten cities nationwide were listed in the top category for affordability. This is one of the few markets where home ownership may be cheaper than renting.
Some sellers were frustrated in the fall when interest rates climbed from historical lows and sales slowed in our market. Those sellers may be anxious to make a sale. Our inventory of homes on the market is low. Interest rates are their lowest in about a year. Now may be the perfect time to go on an adventure of finding a house to turn into your home. Call me for your financing needs.