It’s been an interesting ride for the Oklahoma City housing market. With a robust local economy, Oklahoma City employment among the highest in the nation and mortgage lending rates still at historic low rates, the ingredients are all in place for a successful and fruitful real estate market. And while sales are strong, inventory is dropping and new construction is seemingly at a halt.
In fact, at the end of July new home starts in the Oklahoma City area were down 8.9 percent compared to this time last year across Oklahoma City, Edmond, Midwest City, Moore and Norman, according to the number of building permits issued by each city. The cities issued a combined 2,867 permits the first seven months of 2014. The only area to see growth in permits is Moore, which had permits up 17.8 percent.
According to some, the biggest problem for people looking to move to Oklahoma City and build a home is that lack of developed land ready for new neighborhoods. This problem is likely only going to escalate further. The supply of preowned housing is melting away, dropping to 4.2 months by July 31. Inventory is lowest in the middle and lower-middle price ranges where most people live: a 3.3-month supply for houses priced $125,001-$200,000, and a 3.4-month supply for those priced $75,001-$125,000.