Q. Where do you see the Oklahoma City-area home market now, and where is it going, in terms of construction and sales?
Advertisement
A. Our market is facing an interesting time right now because so many areas around the country are in the midst of their own due market corrections. With so much negative news being reported in the national media about the real estate market, blanket statements that really only apply to larger markets are being interpreted to also apply to smaller markets like ours, when in our case, that negative news certainly doesn't apply. When you look at all of the factors that play a role in our market ... our market outlook still remains strong. Sales aren't where they were when compared to the last few years, but it must be noted that those were record years.
Q. Houses in some parts of the country have actually lost value lately. Where do you see values in the Oklahoma City area, and are builders here adjusting prices or adding incentives, or both, or neither?A. I don't think there's ever been a better time to live in the Oklahoma City area. I believe our market is unique in that it is insulated from the extreme fluctuations, both positive and negative, that other major markets are subject to. That strengthens home ownership as a vital investment vehicle because even though we haven't enjoyed the recent double-digit appreciation that other markets have seen, our market stability has maintained positive growth in values while other markets are seeing decreases. Some builders may be offering incentives or price drops because they have to due to oversupplying their inventory, but that's not always a healthy practice in the long-run for maintaining property values for past clients.
Q. What do these sky-high gas prices mean for the construction business?A. The obvious effect is that delivery and shipment costs increase through fuel surcharges, additional shipping fees and across-the-board price increases. Every nail and brick that goes into a construction project has to get there somehow, and the workers have to get there somehow, so those increases based on fuel add up quickly. Roofing, carpeting, and many other materials are manufactured with petroleum-based ingredients, which also increase in cost as oil prices climb.
Q. You've built your reputation mostly on high-tech innovations in the homes you build. What's the latest "must have” bell or whistle?A. At the pace of technology, the days of "that one new must-have feature” no longer exist. I think the most common technology-related request I'm seeing right now is providing seamless, and often decorative, integration of technology into homes. What discriminating buyers want is a clean, sleek installation of the flat-screen on the wall with no cables visible, and low-profile, if not invisible, home theater speakers. Next to that, energy efficiency is of greater importance to many homeowners. Some think that CFL bulbs, which are compact fluorescent bulbs that work in replacement of less efficient and traditional incandescent bulbs, are the next big thing. I don't think these will prevail because while these bulbs are indeed more energy efficient, they do contain mercury, which can be both a health and environmental hazard. CFL light is often more "commercial” looking, and can't be used on dimmers. I think that LED lighting will be the next big thing.
Prev
