Area home sales defy national slump
Housing demand remains strong

By Richard Mize

Published: January 26, 2007

A slowdown is as obvious as the downward spiral of a sweeping staircase, but hidden in the crawlspace of the sales statistics is a sign of recovery in the housing business in the Oklahoma City area.

The clue? The housing inventory, which approached a six-month supply last fall, ended the year at just more than a five-month supply — 8,263 homes were listed for sale, according to the Oklahoma City Metro Association of Realtors.

That's still about a month's supply more than were on the market at the beginning of the year, but it's the direction the numbers are headed that is getting attention.

A year ago, the housing supply was headed up and now it appears to be headed down, according to data supplied by the Realtors and crunched by The Oklahoman.

That comes to 5.05 months and compares with a supply of four months at the end of 2005.

That means the end of the slump is near, said Victoria Caldwell, president of the Oklahoma City Metro Association of Realtors.

"That is a 17 percent decrease of available stock in less than two months,” said Caldwell, a partner in Dominion Group, which owns RE/MAX First in Edmond and RE/MAX Associates in Oklahoma City. "We are very fortunate in the Oklahoma City metro area that we have a very strong economy and we did not experience the uncontrolled and unsupported appreciation many other parts of the nation experienced.

"The supply indicators tell the story. Our area has experienced an adjustment and now the market is being absorbed.”

Year-end numbers, including average sales prices and total sales volume, won't be available from the Oklahoma City Metro Association of Realtors until next month. But the year ended with a statistic that still evokes wonder among those of a certain age: 6.11 percent, the average interest rate on a 30-year mortgage.

The cost of borrowing money to buy a home cost a scant 2.3 percent more last month than the December before.

Such comparisons can be tricky. The average mortgage rate in December 2005 was 5.97 percent. The average rate in December 2006 was 6.11 percent. The difference is 0.14 percentage point, but 2.3 percent.

Tiny numbers — with big consequences for borrowers.

"Historically, this would be considered a very stable mortgage rate market,” Caldwell said. "I had expected the rates to increase slightly and they truly have been very stable. (Interest rate) stability always is a good indicator for ... growth in real estate sales.”