Monday, January 5, 2015

Is it time for renters to start buying again?

Is it time for renters to start buying again?
Interest rates and gas Prices continue to drop.

Rents are soaring and the supply of good rental homes is limited.  2015 looks like it’s the year for renters to start buying again.

Interest rates for 30 year fixed rate loans are back down below 4% again Fannie Mae and Freddie Mac have announced new low-down payment loans, FHA is still offering 3% +/- down loans and  VA & Rural development are still offering $0 down loans.

In most areas of the country you can own a home for much less than you would pay to rent the same property.  The average nationally was 4.9% but in Denver it was 11% and 14% in San Francisco.  Rents in 2015 are expected to continue to rise faster than Home values and payments.

Good News:  Many of the home owners who lost their previous homes to foreclosure will not have to wait the original 4 years to get another mortgage.  Fannie Mae just announced that homeowners with extraordinary reasons for the default will only have to wait two years.

More good news:  Third quarter growth of GDP in the U.S. was 5% powered by Consumer spending.  Low rates and gas prices cut in half have finally got the consumer spending again.


All in all 2015 should be a good year for consumers, home owners and businesses.


Grand Lake Loner Life Jacket Program


Grand Lake Loner Life Jacket program

Grand Lake Power Squadron in association with GRDA and the Sea Tow Foundation has established a Life Jacket loner program at Grand Lake.  The 1st station is located at the Wolf Creek launch area and will be followed in 2015 by two more locations on the lake.

Lake users can borrow a life jacket while they are at the lake and need to return them to the same location when they are done with them that day.  Any small child near the water needs one even if they are not boating.

Did You Know….:

All boats are required by law to have a U.S. Coast Guard approved, ready accessible, properly fitting life jacket for every person on board.

The U.S. Coast Guard recommends that you always wear a life jacket while underway on a boat.  Boats that are 16 feet and over in length (except canoes and kayaks) must also have a throwable flotation device.

Nearly ¾ of fatal boating accident victims drown each year and most of them were not wearing a life jacket.  Do not become a statistic.  Borrow one of our life jackets today.
Information provided by Wayne Short, RE/MAX Grand Lake, 918-218-6011

Friday, January 2, 2015

2014 Real Estate Statistics for the Grand Lake area in NE Oklahoma

(What does 2015 hold for local real estate activity?)
 Close to Twin Bridges
Pelicans at Grand lake

2014 was a better real estate year for the Grand Lake area than 2013 was…..but not by much.

The good news:  884 properties were sold compared to 829 in 2013.  This was a 6.6% increase in number of sales.  The top of the market ($300,000 and above) actually had one LESS sale than the year before.  The biggest increase in sales at the lake was in the $160,000 to $199,999 range with a 35% increase in units sold.

Good news:  There were 6.5% more homes under contract at the end of 2014 compared to 2013.  The absorption rate (time it takes to sell all listings based on sales action) was down to 13.68 months, a decrease of 13%.  Still that means there is more than a year’s inventory of homes for sale if no one else listed one.

Good news:  There were 14.3% less active listings on the market at the end of 2014 compared to 2013.  Going in to 2015 any increase in demand may cause listing prices to finally start rising….and demand should rise with gas prices being cut in half plus the national economy having one of its better years since the financial crises in the mid 2000’s.

Not so good news:  Average days on the market (DOM) were 6 months for all price ranges. This was slightly more than 2013.  The average and median sales price at the lake really did not change from 2013 to 2014….. (No appreciation.)  The Average list price for the year for all properties was only up 1.6%.

Not so good news:  The finale sold to finale list price did increase from 87.5% to 90% but that still means that sellers are taking on average a 10% hit on what they wanted for their homes.  Part of this is actually unrealistic listing prices by Realtors and sellers plus sellers not staging and updating their homes to 2014 trends rather than 2006 styles when they bought them.

What has to happen for 2015 to be a GREAT year: More 2nd home buyers at Grand Lake,  the area/business/government/residents doing a better job promoting the benefits of living around Grand Lake, More fun activities/festivals’/fairs/rallies to bring people and money to the area, get a casino/marina on the lake, keep the Grand Lake water levels higher, tear down or rent out all the vacant buildings in towns like Grove (are we growing or dying) and finally realize we are not going to get large manufacturing in the area and decide we really are a resort, vacation and 2nd home area.
Area home

Blog by Wayne "SHORTY" Short
RE/MAX Grand Lake, Oklahoma