Oklahoma home market teeters on tax credit hopes
Real EstateAgents say buyers fear losing chance at government funds

BY RICHARD MIZE Comments 0
Published: October 31, 2009

Herb Forrester, a Realtor, thinks of one particular room of the house as he waits to see if Congress extends the tax credit for first-time buyers.

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"If Congress does nothing, I personally think that real estate is going to go into the toilet this fall and winter,” said Forrester, a real estate agent with Keller Williams NorthPointe, 10900 Hefner Pointe Drive.

After a summer of sales better than anyone might have expected a year ago, housing specialists in Oklahoma City are among those hoping for an act of Congress to keep the recovery going.

The credit, passed as part of the $787 billion economic stimulus package earlier this year, is set to expire Nov. 30. The National Association of Realtors and the National Association of Home Builders have been lobbying since the spring for an extension of the credit.

Expansion sought

Senate Democrats said Thursday they wanted to extend the credit until April 30 as well as include people who make more money and some who already own homes.

They want to offer a $6,500 credit for homebuyers who have lived in their prior home for at least five years. Couples earning up to $225,000 and individuals up to $125,000 would qualify for the break, up from the $75,000 limit for individuals and $150,000 for couples for the current credit.

Forrester said he wants less talk and more action.

"I have several buyers and sellers that are afraid to do anything right now, as they fear Congress will act the day after they sign a contract and they will lose out on the ‘gift.’ ... Congress needs to make up its mind and settle the issue once and for all,” he said.

In September, homes here sold almost a week faster than in September a year ago — in 79 days on average — according to the Oklahoma City Metro Association of Realtors.

From August to September, the average sales price fell 4.4 percent to $148,701, and the median price fell 3.5 percent to $128,850, which reflects the recent rush to starter homes by first-timers angling for the $8,000 credit.

A full half of sales that closed in September were in the range of $100,000 to $200,000, which shows the effect of the tax credit, said Judy Lindsay, president of the Metro Association of Realtors and a managing broker at Paradigm AdvantEdge Real Estate, 16301 N May Ave.

Builders retrench

Metro-area builders continued to retrench.

Builders in Oklahoma City, Edmond, Midwest City, Moore and Norman took out permits to build 2,522 single-family homes through September, marking a decrease of 20 percent compared with the first three quarters of 2008, according to the Central Oklahoma Home Builders Association.

The reduction in construction has been steepest in Edmond, with a 46.7 percent decrease in permits, and Norman, which saw a 32.1 percent decline.

While Moore permits declined 19.7 percent and Oklahoma City permits shrunk 15.8 percent, permits in Midwest City increased 13 percent.