Hold on tight for a bumpy ride!

February's market figures for Norman OKlahoma

Being well informed about your market is important. Not only today's, but years before too!  The information is out there. Buyers are looking up what the seller paid for the property, but they also need to consider when.  Sellers, you need to be aware of the above statement and be fully informed about what sales prices are doing in your area.  Know your situation, hold on tight for a bumpy ride and the increase in sales activity for the summer!

I am still intrigued at our market and the figures below come as no surprise. As a REALTOR^®, I look at how many homes there are on the market as competition for the homes I am about to list for sale (or as possible homes for my buyers). This currently overwhelming inventory of homes for sale, paints the picture we've been seeing for the last few months - a buyers' market. Here is an update on the absorption rate for the last few months. (absorption rate is an indicator of how the market is doing and it can be calculated specifically for your price range, neighborhood, or city etc...)

In December, some sellers have taken their homes off the market, market had more closings (close to September level) and some buyers needed to close before the end of the year (for tax reasons I assume), so the absorption rate has come down. This explains the dip for the absorption rate.

January 2011 has the typical seasonal slow down. Days on market (DOM) has even crept up to 112. That 112 days would be for the price ranges that are moving/selling, which is around $120,000 to about $160,000.  Days on Market will typically increase as price range increases too.

In short, sellers prices need to be compelling to get the buyers through the front door. Buyers, get your ducks in a row with credit score and lending, it's a great market but sellers need confidence the deal will go through to the closing table.

Please read on to see more history and explanation of our market.

Where have the buyers gone?

This was the topic at a recent meeting which prompted me to look at some numbers.

*absorption rate is the number of weeks it takes to sell the current inventory at the present rate of sales. Figures from the Norman Board of Realtors Sales and Inventory History report-Aug ‘10

I've been a REALTOR for 8 years now and the market has always leaned in favor of the sellers, till now. The best sellers' market I've seen is in July '07 with 563 homes on the market and an absorption rate of 2.0. The past two years tell a different story with almost double the number of homes on the market, but there were enough buyers to keep the market close to neutral. The number of buyers diminished after the tax credit closing deadline on June 30^th this year. July was the first reporting of numbers that reflect the absence of the tax credit, Norman's real estate market shifted, and the absorption rate indicates a buyers' market now. That trend holds for August too. Buyers are being choosy and sales prices aren't showing appreciation to the degree of previous years.

If you plan to sell your home, now more than ever, it is important to enlist some professional help and listen to your REALTOR^®'s advice to make your home the one that stands out and gets sold. Yes, that means painting, do repairs and maybe some updating, making things sparkle and pricing your home right, right from the beginning.

If you are a buyer, rates are great and there are many wonderful homes to choose from, but qualifying for a loan is becoming increasingly difficult. Your REALTOR^® can help you through this process and has knowledge of other programs you may be able to take advantage of... like multiple down payment assistance programs, so you may not need as much savings as you think to become a new homeowner.

Call, text or email me if you have any questions about this information or are interested in selling or buying.

Ginger Thomas, REALTOR^®
Broker Associate, GRI
Metro Brokers of Oklahoma Central
cell/text: 405-203-9265
ginger-thomas@hotmail.com