Home Building highest point of the year in Tulsa
December 3, 2011
Home construction in the Tulsa area was close to a high point in the month of November however, the pace of construction for the last eleven months is still quite a bit, behind what was seen during 2010.
It was reported by New Orders Weekly that during November 172 homes were started which is almost 25% more than what was seen in the month of October and the second largest construction month seen this year. This is normally the slowdown period as winter is here.
The total of homes for the last eleven months is 1,659, which is down 17% from what we saw during the same 11 months of 2010 according to the permit tracking service.
In the Tulsa metro area, the construction was greater than what was seen across the United States. Single-family starts for the month of November increased 2.3% to a 447,000-unit pace, which is the highest seen since June of 2011 as reported by the National Association of Home Builders.
President of the Home Builders Association of Greater Tulsa for 2012, Bill Butts stated the low-level confidence seems to be decreasing, which has been at the root of the hold back on construction.
He explained, “There was a lack of certainty as to where our country was going,” and went on to say, “But we’re getting into the fourth year of a tough recession, and people have already made their adjustments. Markets have stabilized across the board, and there aren’t any big industries shutting their doors.” Bill Butts stated he is now noticing more activity for new residences at open houses and an increase in people qualifying to buy.
The less expensive homes are doing better than the more expensive homes but a larger variety of homes is beginning to appear on the market.
“Entry-level homes are continuing their strong growth, though the $275,000 to $350,000 range has picked up quite a bit,” Butts said. Broken Arrow had the largest number of housing starts in the month of November with a total of 41 bringing the number of new homes for 2011 to 268. Tulsa was next in line with 31 with Bixby coming in third with 17 for the month of November.
Trulia and Apartments.com
November 25, 2011
Trulia will now be providing even more rental information than normal with their real estate search and their marketing site as they have now collaborated with Apartments.com, which offers a national rental search engine.
On October 27, Apartments.com syndicated their listings to Trulia, which added over 100,000 new listings for rent to the site, Trulia explained.
This collaboration increased the listings of apartments that could be found on Trulia more than 40%. The search ability feature allows users to sort the search of properties results by prioritizing the apartment communities. Apartment community is described as any apartment building or complex offering several units with on-site management.
Apartments.com listings along with photos have now increased the images on Trulia 75% on each listing as an average. Some listing even offers building video tours of the Apartment.com listings.
Ken Shuman, spokesperson for Trulia stated the sites leads for apartment communities have grown 60% since the collaboration became live.
“Our users are loving Apartments.com listings,” Shuman stated.
On the list of most visited real estate websites, Apartments.com was listed as number 4 in the month of October as reported by Experian Hitwise.
In April of 2010, Trulia released rental search on their website and in September released an Android mobile app for the rental market.
Improvement in Home Sales
November 18, 2011
Total home sales during 2011 have done better all across the Tulsa area. The Greater Tulsa Association of Realtors recently reported that 743 properties were sold last month. This figure is down 24.1% from the month of October but is 15.4% higher than November of 2010.
The total for the year has made it to 9,335, which was 0.46% higher than the home sales seen in 2010 through the month of November, which were 9,292.
The home prices in the metro Tulsa are is also down quite a bit, from where it was a year ago.
Some sales year to date has been lower than what was seen in 2010 and in June, the figure was around 15% lower.
President Pete Galbraith, president of Greater Tulsa Association of Realtors, stated that he and other real estate agents in the area are optimistic by the increase in sales especially since the sales occurred after the first time homebuyer tax expired in the middle of 2010. He stated, “It’s been a slow and steady recovery, with no artificial stimulus to create transactions that might not have otherwise occurred.” he said. A broker and owner of Re/Max Executives in Tulsa, David Momper, stated that even with the improvements seen Tulsa has a long way to go. “I still think people are being conservative with their spending and that they’re sitting on scared money,” he explained. He also believes low home prices and low interest rates are helping the real estate market. Another great sign is the number of the homes that are now under contract is 833, which is 33.5% higher than the number seen one year ago.
Galbraith explained there are signs of increased activity for the month of December even though sales are often slower during the winter months.
He stated, “I’ve been absolutely surprised by the number of transactions we’ve been booking this month,” and went on to say, “I think people are starting to feel good again.” Sales may have been growing but prices took a huge hit. The average sale price is 9.78% lower than what was seen in November of 2010 at $138,801. The median price is $117,900, which means that half of the homes sell above this price and half below. This figure is also down 8.78% from what was seen a year ago.
The drop in the market puts the Tulsa area into a buyers market.
“People are still having to compete harder on price to get those homes sold, and they’re having to sell them for less than they did a year ago,” he stated. Momper believes the lower prices will more than likely be seen for a while to come.
“I think we’ll see better sales in 2012, but we might see a little bit of a drop in pricing, depending on what happens with American Airlines and the election,” Momper stated and went on to say, “Though any loss will be less than the national average.” Homes in the Tulsa area are on the market an average of 64 days.
There are fewer homes on the market with only 9,244 listed for sell, which is a decrease of 10.6% seen a year ago at the same time.
At the rate homes are selling and if no more homes are placed on the market, it will take just over 11 months to sell, while in November of 2010 the inventory would have taken 12.28 months to sell.
The decrease in inventory is also a sign of improvement in home sales.
Bank Owned Real Estate Auction
November 11, 2011
National Residential Auctioneers and National Commercial Auctioneers announced on November 3 a multi-property auction of both residential and commercial properties in Northeast Oklahoma. The dates of the auction will be November 16, 17, and 18, 2011 as reported by the auctioneer and project manager, Brent Wellings.
The properties included in the auction include several parcels found at
1644 E 3rd Street in Tulsa, which includes a 12,382 square foot warehouse/retail building along with the two adjacent lots. One of the buildings offers 6,282 square foot of retail space along with a wall down the center allowing for more tenants. Another building offers 6,100 square feet of warehouse space, which is to the west of the retail building and has been used for storage for the current business.
Wellings stated, “Multiple parcels exist within this property description with an opportunity to buy any combination of the buildings and lots being offered or purchase as a whole,” and went on to say, “We will hold a beauty supply inventory liquidation auction following the real estate auction.”
The two lots that are adjacent total 12,000 square feet and could be used for added parking or even new construction.
On the auction block is a three bedroom, three-bath home with 4,318 square feet offering a 1.23-acre lot home at the end of a cul-de-sac at 1601 S. Terrace Road, Cleveland, OK on Keystone Lake. The traditional style home was built in 1966 and offers a large wrap around deck with views of the cove.
Wellings explained, “This property is permitted for a boat dock and ready to be turned into a private retreat just 30 minutes West of Tulsa off Highway 412.”
The last in the group is 17 acres of rural land on Pinehill Road in Bristow, OK east of highway 48. The land is open with heavy timber full of wildlife along a road. The other property is 10 acres of development land for residential properties in Mannford, OK with frontage on 61st street.
Old Fees could be a Problem
November 4, 2011
When looking for a new home it is in your best interest to find out as much as you can about the home before the closing.
When you make an offer even if you have competition, you should include an inspection contingency. The reason is there could be issues with the home that you may not see just by taking a tour. You should word the contingency so that it is very broad and gives you the right to inspect anything that you need to in order to ensure the home will meet your needs as well as your budget.
If during the inspection defects are found that you cannot fix or ones the homeowner will help correct, you should have the option to withdraw your contract and receive your deposit.
In most cases, home buyers normally have a prospective home inspected for structural damage and pests, but you should have other items inspected as well include the roof and drainage.
You should learn not only how bad the defect is but also how much it will cost for repairs. Instead of just talking to someone about the repairs, you should ask for written reports and estimates. These reports can help you when you are in negotiations with the home seller.
If you do not want to negotiate, you can keep the records for your own records and even use them when you are ready to sell so you can show potential buyers the problems you fixed after purchasing.
One inspection that is often overlooked is the permit history of the home. It can take some time and it can be frustrating, as you will have to deal with the city planning department. This may be one of the most important inspections of all as you can learn if there are fees or liens on the home that you will have to pay after you buy the home.
The main reason you want to learn of any permits that may have been taken out by previous owners as if there are outstanding permits on the property you will not be able to receive a permit until you pay the old fees. If the old permits were not approved by the city from the previous owner you will need to have the home inspected again by the city and do any work necessary in order to receive the final approval. All of this money will be out of your own pocket if you do not do a permit inspection and negotiate this prior to closing.
On homebuyer in Rockridge neighborhood in Oakland obtained a permit history for a potential home she was going to buy. There were two issues on the report.
One of the reports was due to a remodel by a previous owner not the one that she was buying from with the permit receiving final approval. However, the final approval was contingent on the seller agreeing to record a notice of property use limitation on the title to the property. The title report did not show a notice of property use limitation. The issue was corrected by the title company after research.
The other issue was that there fees owed. The homebuyer wanted to do work on the home after purchasing and was concerned that she would have to pay the fees. The fees were determined not to be passed on to the new owner as the application from the previous owner had expired.
At the closing of your new home, be sure that you learn along with any permits that may be present, learn the amount of the fees.
Strong Economy in Oklahoma
October 7, 2011
Oklahoma is one state offering a thriving economy and personal income growth is at 8%, which is the fifth best in the entire country. Unemployment in the state is quite a bit below the national average with all employment sectors showing job growth, which does include the construction industry, and the housing market is very healthy.
In Oklahoma City, the median housing priced increased 6% while in Tulsa the jump was 5.6%. Throughout the US, there are very few cities that look better which are San Antonio and Austin, Texas and Cape Coral/Ft. Myers, Florida. The last one was hit very hard during the recession but is now sporting a 19.6% increase.
The decent numbers for the state of Oklahoma are due to much finer stuff.
In Oklahoma over 50 of the 77 counties grew over the last ten years with expansions in population of 8.7% to 3.75 million as reported by the Census Bureau.
Lisa Noon the CEO of the Oklahoma Association of Realtors provided a series of highlights:
•State revenues rose 15.5% over last year.
•Oklahoma City ranked in the top 20 metro areas for strong economic performance. OKC added 2,000 jobs in the oil and gas sector and since 2008; it gained 2,500 jobs in the tourism and hospitality sector.
•Double-digit growth in tax commission collections, which is a good sign of economic growth.
•Construction job growth near the top in the country.
•Statewide residential building permits doubled since the start of the year.
Dan Rickman, a professor of economics at Oklahoma State University stated, “We didn’t have any evidence of a housing bubble, so we had no aftermath.”
Until the 1980’s the economy of Oklahoma was dependent on oil and gas only. With the bust in the early 80’s, Oklahoma was thrown into a recession. Since that time, Oklahoma has become very diverse economically.
Rickman explained, “We used to counter the U.S. cycle,” and went on to say, “Now we follow the rest of the nation, but energy is still important enough that it gives us a cushion. When the U.S. economy was heading into a recession in 2007, we enjoyed a big surge in energy prices.”
Even though the service, hospitality, medical, call center and manufacturing industries all have grown, the important thing about the energy industry is that “it’s a very high-income sector and that spills over into a lot of other areas of the economy,” Rickman said.
Chesapeake Energy Corp. and Devon Energy Corp are major oil and gas companies that are based in Oklahoma with Devon Energy Corp recently building a 50 story headquarters in OKC.
Oklahoma City, which is the capital, has helped the states economy with a population in 2001 of 579,000, which has grown 14.6% since 2000. This is wonderful for the housing market.
Steve Mann, a broker/associate and auctioneer at Paradigm AdvantEdge Realty in Oklahoma City and president of the Oklahoma Metropolitan Association of Realtors stated, “In June, our average home price was $163,600 and that’s down a little from May, which was $170,000, but in May we had several million-dollar home sales.”
“Our list-to-sell-price (ratio) is 97 percent and our average days on the market in June were 85. We had 9,000 listings in the metro area a year ago and we have 9,100 listings this year. And we still have new construction.”
Oklahoma City has not seen a severe REO (real estate owned homes) problem.
Chuck Harris, broker/manager with Century 21 All Pro Real Estate in Oklahoma City and a specialist in REO sales stated, “Up to this point, we haven’t had enough REO properties to affect pricing,” and went on to say, “The market wasn’t flooded with REOs and we’ve been real fortunate as we’ve been able to turn most REO properties under 60 days. We are getting families as well as investors.” Harris went on to explain when it comes to foreclosures in Oklahoma City, “we’ve been able to absorb and get them closed out.”
Oklahoma City is not the only city in the state that has enjoyed the economic health. Tulsa, which is the 2nd largest city in the state, only lost some of their population over the last years, being down 0.3% to
391,906 from 2000 to 2010, however, Tulsa added 2,943 jobs since the first of 2010, mainly in the manufacturing sector.
One of Oklahoma City’s exurbs, Edmond saw an increase in their population of 19.2% from 2000 to 2010 to 81,405. According to Noon, “the cost of living there is 8 percent below the national average.”
Other areas around the state such as Ada home 88 miles southeast of Oklahoma City with a population a tad over 17,000 has a jobless rate that according to Noon may be negative.
Ada, Oklahoma has increased 465 government jobs, 444 service positions, 398 manufacturing slots, and 333 new employees in oil and gas extraction, and filled 222 openings in accommodation and food service industries.
“A number of employers and entrepreneurs are doing extraordinarily well in that area of the state,” said Noon.
If you look at the economy, then you can tell that Oklahoma is more than just OK.
Broken Arrow in the Top 25 “Best Places to Retire” by MONEY Magazine
September 30, 2011
Broken Arrow, Oklahoma recently ranked #8 in the top 25 cities chosen by Money Magazine for their 2011 “Top 25 Best Places to Retire,” as reported in a press release.
Broken Arrow was the only city in Oklahoma to make the list, which was chosen by community and entertainment options along with the local health care system options in the area.
The magazine stated in the release, “In the past few years alone, Broken Arrow has seen some notable new developments, including the opening of a 20,000-square-foot YMCA with many programs geared toward active older adults; an impressive performing arts center that raises its curtain for everything from the local orchestra to Broadway tours; and a 68-bed hospital within the highly acclaimed St. John Health System. A half a dozen golf courses, miles of bike and walking paths, two community centers and civic groups galore add to the attraction. And with updated one-story homes starting in the low $100,000s, you’d be paying about half what you would to move to some comparable communities.”
Mayor of Broken Arrow, Mike Lester, stated the city was “thrilled” to be included as well as recognized for being a “great” city for those wishing to retire.
“We know what a wonderful community we live in and it’s nice to see the nation taking notice,” Mayor Lester stated. “We are establishing a trend of being recognized year after year for the amenities and opportunities we have to offer.”
On the top ten list was
1. Marquette, Michigan
2. Cape Coral, Florida
3. Boise, Idaho
4. Danville, Kentucky
5. Weatherford, Texas
6. Southaven, Mississippi
7. Pittsburg, Pennsylvania
8. Broken Arrow, Oklahoma
9. Lake Charles, Louisiana
10. Winston-Salem, North Carolina
Not only was Broken Arrow chosen among the Best Places to Retire but it was also ranked in Money Magazine’s Top 100 “Best Places to Live” in 2010 along with many other national recognitions throughout the last five years as reported in the press release.
2nd Quarter Market Report Midtown Tulsa
September 16, 2011
Midtown Tulsa, which we will define for this market is an area from Riverside to the west; Harvard to the east, 11th Street to the north and 51st Street to the south is holding steady. Between the time period of April 1st, 2011 and June 30th 2011, 157 properties closed.
Of these properties, the lowest price property was $76,000; however, three properties sold for more than one million. These figures show the diversity that can be found in the midtown area of Tulsa.
From the 157 properties that sold during the 2nd quarter of 2011, a whopping 85% sold for more than $200,000. In the higher prices range several properties sold after a short time being placed on the market. The midtown area is flourishing and is a great investment.
As of July 14, 2011, there were 96 properties for sale for more than $500,000 in the midtown Tulsa area with the highest priced property offering a listed price of $2,159,000. Along with that, 17 of the properties are listed at more than $1,000,000.
2nd Quarter 2011 Market for Midtown Tulsa
26 properties listed for sale under $100,000
113 properties listed between $100,000 and $200,000
81 properties listed between $200,000 and $300,000
93 properties listed between $300,000 and $500,000
Current rental rates in the Tulsa area
September 9, 2011
One bedrooms in the Tulsa area have got up just a bit since 2010 from $506 to $552 for 2011. For two bedroom rentals in Tulsa, the prices have gone up from what was seen in 2010 from $662 to $678. With both 2 and 3 bedroom rentals, the prices are up or about the same as they were in 2009.
In Bixby, one-bedroom rentals are around $510 with 2 bedrooms at $691 without any changes since 2009.
Broken Arrow rentals for a one bedroom on average are $726 and two bedrooms at $676. The cost for a one bedroom has risen 13.97% since 2010 while two the cost for a two-bedroom rental has decreased 9.14% over the past year.
In Catoosa, a two-bedroom rental is on average around $795 and is down 0.62% from previous years.
Claremore Oklahoma has one-bedroom rentals for $455 and two bedroom rentals for $623. The price for a 2 bedroom has increased 8.16% over previous years while the price for a one bedroom has only raised around $10 since 2006.
Owasso has seen huge increases in rental prices. In 2010, the price of a 1 bedroom was $502 and in 2011, the price is now $870, which is a 73.31%. For a two bedroom, the price in 2010 was $665 and today the price is $758, which is a 13.98% increase.
Recently Sold Homes in Tulsa
September 2, 2011
The beginning of August several homes have sold all across the Tulsa area. A few of the sold homes in the area including the neighborhood are listed below. The sold price is a guessimate of the actually closing price.
In Lortondale, the 1,474 square foot, 1.5 baths and 3-bedroom single-family home at 4929 E 27th St sold for $109,500 on August 10.
In Regency Park, the 1,610 square foot, 2 baths and 3-bedroom single-family home at 4830 S 87th East Ave sold for $73,500 on August 8.
In Florence Park, the 1,948 square foot, 2 baths and 4-bedroom single-family home at 1612 S Delaware Ave sold for $229,900 with a mortgage of $204,800 on August 8.
In Ridge Point, the 1998 square foot, 4 baths and 4-bedroom single-family home at 9602 S 88th East Ave sold for $323,000 with a mortgage of $317,400 Mortgage on August 5.
In Minshall Park, the 2,380 square foot, 2.5-bath single-family home at 7743 S Erie Ave sold for $2,134,933 on August 5.
In Brookside, the 936 square foot, 1.5-bath condo at 4517 S Peoria Ave APT 12 sold for $50,000 with a mortgage of $53,800 on August 5.
In Lynn Lane, a lot was sold at 17510 E 45th St for $220,500 with a mortgage of $160,600 Mortgage on August 5. Another lot in the same neighborhood at 4208 S 181st Ave E sold for $143,500 with a mortgage of $139,200 on the same date.
In Swan Lake, a single family home built in 1920 at 1544 E 19th St with 1,629 square feet, 2 bedrooms, and 1.5 baths sold for $405,000 with a mortgage of $206,000 on August 5.
In Renaissance, a 1,221 square foot home with 3 bedrooms and 1.5 baths at 1135 S Birmingham Pl sold for $120,000 with a mortgage of $115,300 on August 5.
In the neighborhood of Western Village, a single family home built in 1962 at 11915 E 8th St sold for $48,000 on August 5.
In Layman / Van Acre, a 1954 single-family home at 9149 E Oklahoma St with 9,672 square feet sold on August 5 for $48,000.
In Mindo Valley, a 2,751 square foot home at 8969 E 16th St sold on August 5 for $230,000.
In Mckinley Mitchell, the home located at 6809 E King St built in 1955 sold for $19,000 on August 4.