Investing in Oklahoma

21 Replies | Oklahoma City, Oklahoma

OKC is tight right now. Hard to find deals. Wholesale scene is a joke.  You can turn up the rare diamond in the rough but it takes a lot of digging. 

It’s to the point where I’m looking into the smaller sub markets and even out of state (Ohio, Indiana, etc). Most of our own sub markets are seeing population decline outside of a select few near the Texas border (weed industry).  

I'm still investing in the OKC area, but like Michael said it's definitely tight right now. Like a lot of other parts of the country, our demand far exceeds our inventory. "Balanced" inventory is considered 6 months and we are currently sitting at under 1 month of inventory in most price points. 
Late last year we were still picking up 1% rule deals on the MLS. I don't think we've offered on anything in the last 6 weeks with fewer than 4 other offers on it and we're putting out at least 5-10 offers a week. I would say 1-2% over list price is becoming the minimum competitive offer right now (and those offers aren't even getting readily accepted).
*Obviously, if you are looking at distressed or tenant occupied properties it doesn't always make sense to go over list price. BUT in the "turn-key" space, it's nuts right now. 

Oklahoma City has the lowest inventory in the country right now (along with Kansas City). Also, home prices have appreciated 10% in the last 6 months in OKC. 

I can't speak for other areas in the state.

Originally posted by @Douglas Spence:

Oklahoma City has the lowest inventory in the country right now (along with Kansas City). Also, home prices have appreciated 10% in the last 6 months in OKC. 

I can't speak for other areas in the state.

 Interesting statistics. Do you have any easy source?  Not doubting, just looking to share. 

I can speak to the 10%+ appreciation, especially in the rental price range. 

Originally posted by @Micheal Briscoe :
Originally posted by @Douglas Spence:

Oklahoma City has the lowest inventory in the country right now (along with Kansas City). Also, home prices have appreciated 10% in the last 6 months in OKC. 

I can't speak for other areas in the state.

 Interesting statistics. Do you have any easy source?  Not doubting, just looking to share. 

I can speak to the 10%+ appreciation, especially in the rental price range. 

 Sorry I can't remember where I read it. I believe it was an article that popped up on my google news feed for OKC news. If I find it or see it again I'll post it here.

How tight is it? We rented a 3/2 home yesterday and had multiple applicants that needed to move because their landlords were selling the house out from under them. It’s not unusual to get an applicant in this situation every couple houses but this was extraordinary. And the tenants were high quality applicants, I don’t think these were soft evictions.

Originally posted by @Douglas Spence:

Oklahoma City has the lowest inventory in the country right now (along with Kansas City). Also, home prices have appreciated 10% in the last 6 months in OKC. 

I can't speak for other areas in the state.

Shiza man, that's nuts!  I hadn't lifted up my head to think about how our insanity stacks up against other markets and if that's the case that's LOCO! 

https://www.oklahoman.com/stor...

"November ended with just 2,079 houses listed for sale in the Oklahoma City area, according to the Metro Association of Realtors — a 1.1-month supply. That includes only offerings involving a Realtor, not houses for sale by owner or new homes offered directly by builders. The low supply is far from the six-month inventory thought to represent a balance of supply and demand.

The median sales price in November was $215,750, up 13.2% from November 2019, the Realtors said."

a few charts:

median dom:

https://fred.stlouisfed.org/se...

avg listing price:

https://fred.stlouisfed.org/se...

The Feb 2021 reports from MLS show in OKC we have .7 months supply. And a balanced market is when there are 6 months supply of homes on the market. As an agent, we're seeing many homes that rent for $800-900 month get listed WITH a tenant for $125k+. And have multiple offers within a day. Seems lot of landlords are cashing out?

I think a lot of buyers overpaying for the rental properties in OKC metro is due to FOMO (Fear of Missing Out).  They can see the rise of inflation in the future, know they can't keep their money in the bank where it will lose purchasing power, and are trying to get that money working in assets like real estate and/or the stock market.  And I would assume that they anticipate the increase in appreciation and/or rental rates in the future will justify their overpaying for the property.  Not saying that's correct, just my opinion. 
Originally posted by @Roland S. :
I think a lot of buyers overpaying for the rental properties in OKC metro is due to FOMO (Fear of Missing Out).  They can see the rise of inflation in the future, know they can't keep their money in the bank where it will lose purchasing power, and are trying to get that money working in assets like real estate and/or the stock market.  And I would assume that they anticipate the increase in appreciation and/or rental rates in the future will justify their overpaying for the property.  Not saying that's correct, just my opinion. 

100% agree. The all-time high's of the stock market have created all-time high net worths and an abundance of capital. People want to get it out of the volatile market and put it into something stable and inflation resistant: cash-flowing real estate in flyover states

Originally posted by @Douglas Spence:

Oklahoma City has the lowest inventory in the country right now (along with Kansas City). Also, home prices have appreciated 10% in the last 6 months in OKC. 

I can't speak for other areas in the state.

Wow, the lowest in the country? 

Originally posted by @Douglas Spence:

@Forrest Faulconer I wish I had saved the article so I could share it on this thread. That info was current as of February 2021, so it may not be accurate now. I know Texas and Arizona have very low inventory as well. 

I'm not surprised, seeing a house pop up on the MLS nowadays is like seeing a snow leopard come out of its cave!

Originally posted by @Victor S. :

https://www.oklahoman.com/stor...

"November ended with just 2,079 houses listed for sale in the Oklahoma City area, according to the Metro Association of Realtors — a 1.1-month supply. That includes only offerings involving a Realtor, not houses for sale by owner or new homes offered directly by builders. The low supply is far from the six-month inventory thought to represent a balance of supply and demand.

The median sales price in November was $215,750, up 13.2% from November 2019, the Realtors said."

a few charts:

median dom:

https://fred.stlouisfed.org/se...

avg listing price:

https://fred.stlouisfed.org/se...

Any more recent data? 

Thanks for all the info and feedback. The OKC area market sounds pretty tight, but better than the Boise market (where I live). Right now there is a .4 month supply of homes on the market and the demand is high. Builders have stopped taking reservations from new buyers to try and catch up and they are having a hard time getting materials to finish homes because of supply chain issues. Prices are crazy and everything goes for well over asking price. Almost impossible to find a rental property that cash flows without paying cash for it. From what I'm seeing on Zillow or Realtor.com, it makes more sense to invest there still. 

Originally posted by @Cassi Justiz :

I'm still investing in the OKC area, but like Michael said it's definitely tight right now. Like a lot of other parts of the country, our demand far exceeds our inventory. "Balanced" inventory is considered 6 months and we are currently sitting at under 1 month of inventory in most price points. 
Late last year we were still picking up 1% rule deals on the MLS. I don't think we've offered on anything in the last 6 weeks with fewer than 4 other offers on it and we're putting out at least 5-10 offers a week. I would say 1-2% over list price is becoming the minimum competitive offer right now (and those offers aren't even getting readily accepted).
*Obviously, if you are looking at distressed or tenant occupied properties it doesn't always make sense to go over list price. BUT in the "turn-key" space, it's nuts right now. 

 It seems like many cities are like this now. 

I'm glad I'm not the only one seeing it hard to find deals. I always look to find at least a 1% rule but it seems like the rent in OKC is low that it would be hard to list a house that would even come close to 1% of the worth