TAHLEQUAH — While much of the country is seeing a major shift in the housing market - rising interest rates for buyers and lower home prices for sellers - Tahlequah’s market remains strong.

“Along with the abundance of new construction, we have an equal abundance of buyers,” said Rhonda Foster, realtor for Century 21-Wright Real Estate. “I’d say we have a 50-50 split on who’s buying, between first-time buyers and others.”

According to figures from Tahlequah City Planner Joe Williford, the city issued nearly $9 million residential construction permits from April 2005 to April 2006, which indicates a strong growth cycle.

Scott Wright, Realtor and owner of Century 21-Wright Real Estate, has a housing development south of town that’s booming.

“Southridge consists of 210 acres with six subdivisions,” he said. “Our market absorption is 2-1/2 times more than the original plan. The latest statistics I’ve seen on new construction homes length of time on the market is 37 days. That’s just unheard of. People are buying new construction homes faster than we can build them.”

Foster’s and Wright’s sunny outlook may be running contrary to the national scene. According to recent reports by the Associated Press, the housing market is headed for a slump, with first-time buyers and homeowners locked into variable-rate mortgages suffering. For first-time buyers elsewhere in the U.S., houses seem pricey, leaving the old rule of thumb of having 20 percent of the purchase price as a down payment unattainable to many. First-time home buyers in Tahlequah may not face the same challenges, though.

“We can help home buyers get information on rural development home loans,” said Foster. “Many of these, although they have an income requirement, will finance 100 percent of the purchase price and refund earnest money at closing.”

The program Foster referred to is the U.S. Department of Agriculture’s Oklahoma Rural Development Guaranteed Loan Program, Section 502. Under this program, the Rural Housing Service guarantees loans made by private-sector lenders. This means should an individual borrower default on a loan, RHS will pay the private financier. Under the terms of this program, a family may borrow up to 100 percent of the appraised value of a home, thus eliminating the need for a down payment.

“Another program that assists first-time buyers is the My Community loan program,” said Foster. “It’s similar to the Direct Loan program, but has no income requirement, which makes it available to a broader range of consumers.”

Foster cited income levels as the reason for finding available mortgages.

“In a way, the reason we can get these loans for our customers is because of the poverty level here,” said Foster. “So many people fall within the income guidelines, it makes it easy for credit-worthy first-time home buyers to get a loan.”

Matt Brassfield, owner and loan officer of A&B; Mortgage, agrees with Foster about Tahlequah being a buyer’s market.

“It’s easy for first-time buyers to get financing,” said Brassfield. “Cherokee Nation provides mortgage assistance to tribal citizens, which provides $15,000 toward the purchase of a home; in addition, the USDA guaranteed loan program helps a lot of people.”

While many here qualify for low-interest mortgages, people elsewhere in the country resort to a trickier, variable rate mortgage. Brassfield said Tahlequah’s market doesn’t suffer enough disparity for variable-rate mortgages to be attractive to buyers.

“Generally, variable-rate mortgages will have a lower rate,” said Brassfield. “But with the programs available here in Tahlequah, there’s just not much of a demand.”

Brassfield said variable-rate mortgages are generally popular in places with a more transient population, such as California.

“Variable rates are good for people who move quite a bit,” he said. “Coaches who change jobs frequently are one example of a good candidate for a variable-rate mortgage.”

Figures from the Mortgage Bankers Association indicate that of all U.S. homeowners, 24 percent have an adjustable rate, while 76 percent have a fixed-rate mortgage. Initial rates on adjustable mortgages have gone up rapidly in the past year.

According to figures provided to the AP by Freddie Mac, as recently as last week, rates on a one-year adjustable-rate mortgages stood at 5.50 percent, up from 4.91 percent just a year ago. Rates on 30-year mortgages averaged 6.40 percent, compared to 6.15 percent a year earlier.

Realtors sometimes lose out during a buyers’ market.

“You’ll see a greater number of FSBOs [for sale by owner] right now, since it’s a buyers’ market,” said Brassfield. “It’s a weird relationship; in a buyers’ market, we’ll close more home loans without a Realtor. The opposite applies to a sellers’ market.”

If the 300 block of Dogwood Drive in Tahlequah is an indicator, Tahlequah is experiencing a buyers’ market. Of four homes for sale along the block, three are offered for sale by owner.

Lana and Rick Phillips are hoping to sell their son’s three-bedroom, 1-1/2-bath home on Dogwood without a realtor. The couple have worked for weeks getting the home ready, hoping for a quick sale. Their son recently married, and moved into a new home with his wife, leaving the house ripe for the picking.

“Hopefully, by not using a Realtor, we’ll be able to save money,” said Lana. “Not just for us, but for the buyer as well.”

The Phillips’ home could be attractive to many first-time buyers, with a low, assumable, fixed mortgage rate, in addition to a number of interior improvements, including new doors and kitchen cabinets.

Although Lana would prefer to avoid using a Realtor, she remains practical. “If we can’t get it sold on our own by Dec. 31, we’re going to hire a Realtor,” she said.

Which, reasonably, delights Foster. “People generally hold the common misconception that by not using a Realtor, they’re saving money,” said Foster. “But they’re not. We work for our commission, and generally, we can get the commission on top of what the seller is asking. In addition, the seller isn’t left to qualify buyers for their home; we do that for them. We also have access to a broad base of potential buyers, whereas an individual doesn’t have that.”