It’s always interesting to observe how the national media outlets talk about real estate markets.
They often quote reports from the National Association of REALTORS® (NAR) or other large organizations, taking the liberty of generalizing statistics as if every market across the country, including Oklahoma City, were the same.
They would have us believe it to be a one-size-fits-all housing market.
About the only thing they have reported correctly lately is that the most active group of buyers and sellers in the market in the past year or two is the group over age 65.
According to NAR’s Homebuyers and Sellers Generational Trends Report, this segment makes up about 50% of all national home sales.
Real Estate is Hyper-local
Unlike the global financial markets, real estate is highly localized. Even within a single metropolitan area, pockets or neighborhoods can fall outside reported trends.
In other words, each area is unique. And while one neighborhood might be declining in value, an adjoining area may be increasing.
Online sites such as Realtor.com and Zillow are designed to aggregate data and appeal to consumers by offering free market reports and home pricing evaluations.
Because these are computer generated, however, there are often inaccuracies.
Their estimates are not able to take into consideration the interior or exterior condition of homes that haven’t sold, local up and coming hotspots, or financing terms of private sales, to name a few.
Even these sites encourage consumers to consult with local real estate professionals – this is of course in the fine print!
Local media outlets use syndicated material to fill papers or get more clicks, but this information can be misleading.
Despite our ability to access more localized data and information, we are often met with skepticism when we offer consumers more accurate data than what is reflected in online inquiries.
It is unfortunate that people tend to trust online data from unknown sources more than local professionals with decades of experience pricing, marketing and selling homes.
Sales Data Has a Short Shelf Life
If you are invested in the stock market, chances are you talk to your financial advisor regularly.
At the very least, you read your statements and inquire about changes that may be necessary as markets shift.
You likely even ask for opinions about when to sell and when to buy.
As you can imagine, this is also good practice as it relates to real estate investments, namely your home.
And just like the financial markets, each day is a new day. One sale just one street over can change the value of your home overnight.
So, having a local agent who is providing you with real time transactional data – coupled with local expertise – can give you an edge when it comes to staying current on what’s probably your largest single asset – your home.
Outdated Sales and Conveniently Poor Memories
When it does come time to sell, you may want to disregard what your neighbor just three doors down told you they got for their home two years ago.
For starters, people tend to overstate the amount they got for their home when talking to friends and family, but especially neighbors.
Second, the most current data for home valuation purposes is considered to be within twelve months (or less in a shifting market).
Finally, if there are differences in the layout, size, condition, or location of a home sold near yours, adjustments will need to be made (positive or negative) to establish an accurate pricing strategy.
Low Inventory Gives Longtime Homeowners the Upperhand
Current data shows that as people get older, they are less likely to purchase their next home and are more likely to lease or reside with family members.
This graph reflects the percentage of people by generation who sold homes in 2022. Similar trends are expected to continue for the foreseeable future.
Additional data supports a continued deficit of housing inventory for most major markets across the country, including Oklahoma City, Edmond, Norman, Yukon, Mustang, and other suburban areas.
This means that many sellers still have the advantage when it comes to negotiations.
While economists and other so-called experts tend to guess, short of a crystal ball, no one can really predict how long this will last or what might follow this particular cycle.
ASK YOUR AGENT
- What is the current value of my home?
- How has my home’s value changed in the past 3 to 5 years?
- What does the market trend for my area or neighborhood look like going forward?
- What can I do to maintain or improve my equity?
- What is the best way for me to stay informed about the housing market in my area (and my home value)?
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