Oklahoma Real Estate Market Trends 2020 - Q3
You guys are going to be so excited. We’re going to talk about charts and graphs and numbers and real estate and maybe a little bit of human error…not my own! We are going to cover the second quarter of Market Trends today and I’m going to go ahead and include July since we’re a little bit late. With this, we’ll start off talking about MLS wide and then we’ll move into the Tri-City area.
We are here to talk about the Market Trends. I am a little bit late so I’m going to go ahead and include July in this report, as well. First, we are going to talk about the Active Listings. MLS wide, beginning in April we were just about at 2,500 and we ended at just about 3,500. Total Number of Sales in April was right around 2,500 and as we scooted along to July, we got to 3,500. So, good jump of about 1,000.
For those of you who have been paying attention to the market you have already noticed that things have gotten pretty aggressive and homes are moving pretty fast. Our Average Days on Market really seems to follow that pattern. Back in April in was in between 45 and 50 (days on market). Now, we are seeing it get a lot closer to 40 as being our average. We are also going to talk about Price Per Square Foot. All this information is MLS wide, right now. From April to July we are seeing it continue to jump.
The average has been between $100 and $120 (per square foot). It has not reached $120 (per square foot) but it has continued to rise. We also work with builders and they are telling us that expect their “price per square” to continue to jump because all their contractors are having issues getting supplies, or the cost of supplies are going up. Due to that, they are going to have to raise their “price per square”.
For the Tri-City are the Number of Sales over this last quarter; In April, right around 80, May stayed pretty close to there (80)., June was the highest around 140, and July is starting to fade off a little bit.
The Active Listings of Tri-City which includes Blanchard, Newcastle and Tuttle for April we had roughly 520-550 Active Listings. As the months have gone by to July, we are looking at 400, total. Which is not uncommon. It is becoming the start of a new school year, and we do have a lot more buyers than we do sellers, right now.
We now going to talk about the Average Days on Market or the Average Days to Sell. It’s not what it feels like because everything feels so aggressive and it’s moving so quickly. We will put a home on the market and most of them are receiving multiple offers in the first 24 hours. We are seeing things like escalation clauses in an extremely competitive market. It is seeming to take longer (due to COVID 19) to get all the financing pushed through with new regulations that are happening. In April, the Average Days on Market stayed close to 95 and drops down closer to 65 in May, in June we jump back up closer to 70 and in July we are back down closer to 60.
We going to talk a little about human error. This is going to be specific to the topic of Days on Market in the Tri-City area. If you were looking at the numbers, our average MLS-wide looks a lot lower than Tri-City. There is quite a bit of land that we sell in this area and those always take a little longer to sell. You also have your other outlier’s which are your higher-end homes, those take longer. Sometimes, there are For Sale by Owner that are just entry only and then you some over-priced listings. If you take those out, it that changes that number quite a bit. All I did is go back and change to pull just residential in the Tri- City area and then we jump from looking like 60 days on the market to under 30. In fact, we are under 15 days in July. This is true of how the market feels. We are getting a lot more cash offers and conventional offers. Keep that in mind whenever you are placing your offers. If you are F.H.A. financing, V.A., U.S.D.A. or any of these other loan types. We are seeing more of this and is now something you are having to compete with and usually those bids win.
Another thing we think you might be interested in knowing is the Close Price Compared to Original Price and what those ratios look like. April through July it is 100% (99.8%). We not seeing homes go for under market value, whatsoever. If anything, we are starting to see some “Over” market value offers coming in, cash offers and those are going through. Because of these kinds of things, I do expect to see the prices continue to rise some.
In a nutshell, lower interest rates, very aggressive offers and a lot of competition with the offers. More buyers than sellers, right now. That pretty much sums what we are seeing right now. Hopefully, that helps you make better educated decisions with your Real Estate purchases or sales.
We will see you next time… Crys & Caleab Keith Home Team