Market Update
Buying or selling a home may look a little different over the next few months than it has over the past few years. With interest rate changes happening, there have been several different articles I’ve read recently about the future housing market, all with different opinions as to how it will affect the market, whether or not a bubble will burst, more or less inventory, etc. Below are some quotes from just a few of the articles I came across. (Click on each title to read the full articles.)
Forbes - Housing Market Predictions In 2022: Will Prices Drop In The Third Quarter?
“The fundamental supply and demand imbalance in the housing market has caused most experts to forecast higher home prices throughout the rest of the year.
Fannie Mae predicts prices will move up in 2022 by 10.8%, but they also forecast a significant cooldown in 2023, with prices climbing just 3.2%.
A recent Zillow survey showed that 60% of housing experts believe we’re not in a bubble, citing strong fundamentals such as scarce inventory and shifting housing preferences as the reason for the double-digit home price appreciation over the last couple of years.”
CNBC - Here’s Why This Housing Downturn Is Nothing Like The Last One
“All of this has people asking: Is today’s housing market in the same predicament that it was over a decade ago, when the 2007-08 crash caused the Great Recession?
The short answer is: no. America’s housing market is in far better health today. That’s thanks, in part, to new lending regulations that resulted from that meltdown. Those rules put today’s borrowers on far firmer footing.”
Yahoo Finance - Where The Housing Market Is Headed In Summer 2022, According To Experts
“If you’re a buyer, some promising signals indicate that the grueling real estate landscape that has frustrated you for more than a year is finally starting to loosen up. “The housing market is heading back to sanity in the summer of 2022,” said Eyal Pasternak, a licensed realtor in Miami and the founder of Liberty House Buying Group.
“The current supply of homes for sale is still very low,” said full-time Chicago-area residential real estate developer Bill Samuel of Blue Ladder Development. “Roughly 58% less than pre-pandemic levels.”
Even so, the needle is moving in the right direction. “While available inventory is still low, historically, comparing annual levels over the past 10 years, it is slightly higher than it was at the start of 2021,” said Samuel.
In short, things are improving, but the inventory shortage is still too significant for any sweeping change to set in this summer. In all likelihood, the best-case scenario is that prices will continue to rise, but more slowly.”
Marketwatch - Home Building Stocks Enjoy A Broad Lift After Housing Data
“Shares of home builders got a broad lift in morning trading Tuesday, as data on existing home sales assuaged some investor fears, for now, by meeting expectations. The iShares U.S. Home Construction ETF ETF, rallied 2.7% in morning trading, after being up about 1.4% just prior to the release of the data, while the Dow Jones Industrial Average DJIA, +2.15% rose 565 points, or 1.9%. The National Association of Realtors released data at 10 a.m. Eastern, saying existing home sales fell 3.4% to a seasonally adjusted annual rate of 5.41 million in May, a fourth straight monthly decline but in line with expectations. Among the home builder ETF components, Lennar Corp.'s stock LEN, +1.58% charged up 5.0% after the company reported fiscal second-quarter profit, revenue and new orders that topped expectations, and provided an in-line outlook. Elsewhere, shares of D.R. Horton Inc. DHI, +1.22% jumped 3.1%, Toll Brothers Inc. TOL, +1.25% climbed 4.1%, PulteGroup Inc. PHM, +2.54% advanced 3.8% and KB Home KBH, +0.20% tacked on 3.1%.”
Keeping Current Matters - The One Thing Every Homeowner Needs To Know About A Recession
“A recession does not equal a housing crisis. That’s the one thing that every homeowner today needs to know. Everywhere you look, experts are warning we could be heading toward a recession, and if true, an economic slowdown doesn’t mean homes will lose value.”
“The National Bureau of Economic Research (NBER) defines a recession this way:”
“A recession is a significant decline in economic activity spread across the economy, normally visible in production, employment, and other indicators. A recession begins when the economy reaches a peak of economic activity and ends when the economy reaches its trough. Between trough and peak, the economy is in an expansion.”
Oklahoma’s Market
Having access to three different Real Estate Boards (Oklahoma Metro Area, Tulsa Metro Area, and Grand Lake Area), I am grateful to have a broad sense of the Oklahoma market. Below are several graphs that give a great conceptualization of Oklahoma’s market from several counties.
Counties - Oklahoma, Cleveland, Logan
Counties - Tulsa, Creek, Lincoln
Counties - Craig, Ottawa, Delaware
Just to narrow it down to specifically Oklahoma City and Edmond…
Takeaway…
As a real estate agent, the most important information I want to make sure my clients, friends, and family have, is that no matter what type of market we are in, I am working hard behind the scenes to be sure you have the highest possible level of service from me. Through education and research, I am constantly gaining the knowledge I need to set a higher standard. Markets change from season to season, but as YOUR realtor, I am here for you in YOUR season, YOUR time, YOUR moment of need .