When making such a big purchase such as a home it’s common to have some anxiety about economic downturns. Many wonder will it happen again and when, if it does. Do you really need to worry about that though? Realtor.com in the article Afraid of a Bubble? Buy Without Fear in These Top 10 Stable, Growing Markets has “set out to find the real estate markets that are least likely to pop if the country heads toward another recession—metros where home prices are still rising at a healthy (versus dizzying) pace”. They have gone out to find the housing markets that are “not too hot and not too cold” but that are just right to not feel the harsh effects of an economic crisis if it were to happen again. Here are the things that they have taken into consideration to find those under the radar hot spots:
- Positive (but not out-of-control) price appreciation of between 4% and 12% in 2016
- An ample supply of homes for sale (between three and seven months available)
- Affordability, measured by the percentage of income needed to buy a home
- New home construction recovered from the recession
- Median number of days homes are on the market (the lower the better)
- Foreclosure rate
- Percentage of homes underwater
- Percentage of homes with price reduction (yep: Lower is better)
- Low unemployment rate
It’s always better to be safe than sorry when it comes to your family’s future. However, Realtor.com pointed out that just because the housing market is up doesn’t mean it will or has to come down in a crash. Even so, many still don’t want to risk it. The article brought out the top ten housing markets to have the best cushion if we started to head into another recession. On the list, you’ll be happy to know that Oklahoma City was one of them.
Oklahoma City Placed ninth in the housing market to have the most cushion if the economy were to go sideways. It also placed first in having the most reasonably priced homes that give you size and a nice back yard for you and your family. The most important question though is, why does it have the cushion that it does? The article states that from 1990 to 2015 it was the big city that was least affected. Recently it has been affected by the “oil slump” but regardless the housing market seems to be holding. It continues in saying that prices came up 7% in 2016 from the 11% down it faced the year before that. Why such the stable economy though? Realtor.com attributes it to “a diverse economy of oil and gas, state government, and the Tinker Air Force Base”.
Whether you have scars from the last economic woe or are a first-time buyer that rode in the rocky boat of your parents during that time you have no reason to fear. Here at McCaleb Homes we build just outside of Oklahoma City in Edmond, OK providing affordable homes in a stable market even if we start to head into a recession. Now you can take a breath of relief and check out the homes we have available. Whether you have a smaller budget or a larger one we’ve got you covered here at McCaleb Homes.
photo credit and original article: http://www.realtor.com/news/trends/top-10-stable-housing-markets/
By McCaleb Homes 4-5-2017