2016 real estate predictions
In 2016, the Oklahoma real estate market is primed for continued steady growth. Throughout last year, Oklahoma experienced a seller’s market due to the low inventory and a large amount of buyers. The Oklahoma Association of REALTORS® (OAR) expects these trends to continue into 2016 due to increased demand for existing and new homes, low inventory and continued low mortgage rates — all of which will encourage homeownership.
“In 2015, Oklahoma encountered a 2 percent increase of home sales from 2014, and can continue to expect steady growth in 2016,” said President of the Oklahoma Association of Realtors, Chuck Harris. “Oklahomans can look forward to a rise in appreciation and renewed interest in homeownership in part due to continued demand for homes and low mortgage rates.”
Homeowners, sellers and potential buyers can anticipate the following in 2016 for the Oklahoma real estate market:
• Stable mortgage rates. At the end of 2015, the Federal Reserve increased interest rates by .25 percent. This will impact short-term loans such as car loans, but homebuyers and sellers do not need to be concerned about a big impact on mortgage rates.
• Continued increase in millennial first-time homebuyers. The millennial generation makes up 32 percent of homebuyers, is 68 percent of first-time homebuyers and will continue to make an investment in real estate. Oklahoma’s traditionally strong and diverse economy has given millennials greater buying power and they will continue to be a driving force in home buying.
• Steady growth. Oklahomans can expect a steady pace of growth as demand remains high for new and existing homes and as new construction remains tempered. Oklahomans can anticipate housing prices to slightly increase in 2016, but remain affordable as this continues.
“While our state combated some economic concerns in 2015, the demand remained strong,” Harris said. “The key in the 2016 real estate market is to remain aware of outside influences, continue to be realistic regarding pricing and consult with a Realtor who can help guide you in this market.”