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Oklahoma City, OK - Newest Figures for New Home Sales Suggest Market Drop is Subsiding

New home sales dropped year-over-year in November in the Oklahoma City, OK market, but with a percentage fall less harsh than October 2011, there are suggestions the market may be stabilizing. There was a 13.2% drop in new home sales from a year earlier. This was after the housing market saw an 18.7% drop year-over-year in October.

A total of 3,004 new homes were sold during the 12 months that ended in November, down from 3,036 for the year that ended in October.

New home sales accounted for 13.2% of overall housing sales, down from the 14.5% of sales a year earlier. Following a year-over-year decline in October, sales of new and existing homes also slipped year-over-year in November.

Pricing and Mortgage Trends

The average price of newly sold homes jumped year-over-year 15.6% in November to $210,144 per unit. This lift follows a move from $208,197 per unit to $209,282 from November 2009 to October 2011.

For newly sold homes, the average mortgage size grew year-over-year along with new home prices. The average mortgage size rose to $184,040 in November, marking an 11.7% surge compared with a year earlier. In October 2011, average mortgage size on newly sold homes saw an 8.5% rise year-over-year from a year earlier. For new home sales, the percentage of the sale price that was being financed declined 3.1 percentage points year-over-year to 87.6% in November 2011. In October 2011, there was a 6.4 percentage point rise from a year earlier.

Other Market Trends

The percentage of new home sales belonging to single-family homes has risen from last year while the portion of new home sales belonging to attached units has dropped. Single-family home sales gained from 96.7% of new sales in November 2010 to all of sales in November 2011. Conversely, the share of new home sales belonging to attached units fell to no part of sales from 3.3% of sales.

For all new homes sold, the average unit size fell 1.0% year-over-year to 1,990 square feet in November 2011. For newly sold homes, an average size decline contrasting with an average price gain was also seen in October 2011 when the average size of newly sold homes dipped 3.8% to 2,019 square feet.

Foreclosures and real estate owned (REO) sales remained level in November from a year earlier, but remained a burden on the market. Out of all existing home sales, foreclosures combined with REO sales made up 27.4% of sales, relatively unmoved from a year earlier. The percentage of existing home sales involving foreclosures slipped to 15.5% in November from 17.4% a year earlier while REO sales as a percentage of existing home sales increased to 11.9% from 10.4%.

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Source:Housing Intelligence

8-24-2016