Owasso Economy and the Housing Market

Owasso Economy and the Housing Market

What are the Experts are predicting for our Economy. I know it’s a very scary time and with all the negative news and doom and gloom, I feel it’s important to look at what the Experts are saying and base our decisions on that information.    We are constantly asked, ”what’s happening in the housing market?” What’s going to happen to our economy and should we be thinking about buying or selling a home in Owasso or nearby Collinsville.   Well, let’s take a look at what’s happening on a National level.  According to Sam Khater, Chief Economist of Freddie Mac, and I quote ”Although the uncertainty of the crisis means forecasts of economic activity are more unclear than usual, we expect that most of the economic damage from the virus will be contained to the first half of the year.  Going forward we should see a recovery starting the 2nd half of 2020.”  Locally we are still seeing buyers out in full force and inventory is very low right now.  We are also continuing to see multiple offers on most properties, and they are still moving rather quickly.  Obviously, in the economy, there are a lot of unknowns right now which obviously can add to our anxiety and stress,  but if we look at what we DO  know, that will help us make more accurate decisions about buying or selling a home in the Owasso and Collinsville areas.  We know we started this year stronger than ever, however, due to The coronal virus, we are in a high unemployment rate right now, and we know that the Fed is doing what they can to help.  The good news is that we are in a record low interest rate environment which leads to people wanting to buy because they have more purchasing power.  Also, more good news is that equity amongst homeowners is strong, according to John Burns Consulting, 42.1 percent of homeowners own their home free and clear, meaning there is no mortgage on their homes.  16.6% of Americans have between 60 and 99% equity in their homes. And Only 7.3% of Americans have less than 10% equity in their homes.  This is very different than back in 2008 when many people used their homes as ATM’s. homeowners seem to have learned their lesson as 58.7 percent of all Americans have at least 60% equity, which will help offset a housing crisis.  This is good news for Americans.  Also,  Rental values continue to go up, we have seen an upward tic on rental costs since 1988, and they are still continuing to rise, this again promotes buyers wanting to purchase as they don’t get the tax advantages and other benefits of homeownership. Also, more good news is that in the first few months of the year, “Showing Rates” which shows us how many homes that are for sale are being showed, the showing rates continued to increase until around the week of March 8th, when showings took a huge dive, as many areas had shelter in place and were not allowed to show homes.  However, since the week of April 12th we are seeing Showing Rates of homes is starting to significantly increase as the shelter in place restrictions are being lifted or easing up. So  Buyers are still out there and it isn’t all doom and gloom.  Please feel free to reach out to us anytime, we are here to answer your questions or even if  just need some advice about what to do in regards to buying or selling your home.

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