By BETTY RIDGE
Press Special Writer
TAHLEQUAH —
Maybe you’d like to upgrade to a bigger house, or retire to a small one.
But you’ve been reluctant to put your home on the market, for fear it will be difficult to sell in a still-struggling economy. And what about taking out a loan on a new house, when many buyers across the nation have found themselves “underwater,” or owing more on their home than it’s worth?
That’s not the case locally, Tahlequah Realtors and mortgage experts say. A recent study by CoreLogic, a business data company, found Oklahoma has the lowest percentage of people who owe more than their houses are worth, according to the Associated Press.
Only 5.9 percent of Sooner homeowners have negative equity.
The national average is 23.7 percent.
Meanwhile, the housing market has been picking up, local Realtors say.
“Fortunately, we don’t have that sort of ups and downs here,” said Scott Wright, of Century 21 Wright Real Estate.
During April, his firm recorded 43 closings and 52 pending sales.
“Our net total was near 100, which is the best month we’ve had in 32 years,” Wright said. “It looks like, from the basis of the market, it’s coming back with a vengeance.”
He and other Realtors say the tax incentive for first-time home purchasers, and for those who were upgrading to larger houses, had an effect on April sales, since the credit expired April 30. But even without the credit, Realtors anticipate sales are taking off. People driving around town see more houses going up in new, as well as established neighborhoods.
In Wright’s SouthRidge development, six lots were sold last year. This year, 2-1/2 times as many have sold. Ten houses are under construction and are selling as they are completed, or shortly afterward.
Last year, no more than two houses were going up in SouthRidge at any given time.
Banks are more prone to give construction loans on “spec” houses, and interest rates are low. Buyers also can benefit from low interest rates, Wright said.
Beverly Jeanes of Cochran and Associates Real Estate got good news Thursday morning, just as she was about to leave to show houses to a customer.
“There’s been a lot of concern because of the tax credit expiring April 30,” she said. “But we now have rural development money, which is probably the No. 1 loan source for Cherokee County.”
After speaking with lawmakers, she learned the Oklahoma Senate had approved additional rural development funds, previously OK’d by the House. Those loans are desirable because they have a 100 percent guarantee and other advantages for the buyer.
“With that news, I feel very good and very positive about the market,” Jeanes said. “We are seeing a good, stable market even though the tax credit is over. I think it’s still a great time to put your home on the market, and buyers are still able to purchase a good home.”
Jeanes noted that Tahlequah’s market is strong because its economy is better than in many comparable towns. Northeastern State University, the Cherokee Nation, Tahlequah City Hospital and Cherokee Nation W.W. Hastings Hospital all are stable, growing employers. Cherokee County is not as dependent on industry, nor hurt by plant closings, like in many areas.
Most houses that sell locally are in the $90,000 to $140,000 to $150,000 range, with the median being around $90,000, Jeanes said. But there is a pretty good market for anything at $200,000 and under.
“When you get up over the $150,000 price range, it could take a little longer to sell,” she said.
That’s because the pool of potential buyers who can qualify for that size loan is smaller.
Rhonda Sams, office manager for John Hausam ERA Realty in Tahlequah, said her agents are busy showing and selling property, especially in recent months.
“In the past few years, we didn’t see such an appreciation as on the coastal areas,” she said. “Of course, business did slow down, because everybody was watching the coastal areas. But it seems like everybody has relaxed and we are not seeing such changes.”
Some people buyers were trying to borrow too much money, and some mortgage companies were approving such loans, but that hasn’t been the case so much around here as in other parts of the nation, Sams said.
“There were a lot of mortgages out there where people were borrowing more than 100 percent on property. It was just available to people and they were going out and doing things, maybe not reading the fine print. It had to make up somewhere,” she said. “But I’m still pretty happy with what I’m seeing in this area.”
She considered February sales about normal, but “we actually had a record month in April,” she said.
Buyers and sellers aren’t as nervous about the economy as they had been, she said. They’ve become more educated about wise marketing and purchasing.
Some people have been able to take advantage of properties in jeopardy of foreclosure through “short sells,” where the mortgage company determines what is the least it can take for a property. Often a buyer can get a property for a little less, and the seller is able to escape from the loan without having a foreclosure on his credit record. It can be a good solution for all, but the buyer should be careful to inspect the home, because he’s purchasing it “as is.”
Bill John Baker has built houses and apartments in the past, and currently he finds duplexes are good investments. Last year he put up two rows of two-story duplexes lining Wisteria Lane, off Grand Avenue in north Tahlequah. A second street of duplexes is under construction.
Baker is positive about the housing atmosphere in Tahlequah, including for quality rental property. The duplexes he’s building are being leased before they’re finished. Each has the features one would expect in a single-family home – including two-car garages, quality kitchen cabinets, stainless steel appliances and laundry rooms.
He thinks the single-family market also will pick up.
“What people have been paying for homes here per square foot is half what they’re paying in Tulsa,” he said, adding that in some places, such as on the coasts and Las Vegas, it’s “outrageous.”
Local lenders also are good to do business with, he said.
Contractor Jim Hullinger, of Hullinger Homes, is building the duplexes for Baker. He said the market for “spec” and custom houses still is down, but believes the economy in this area is stronger than in others because Sooners are naturally conservative.
“We’ve always struggled to survive,” he said.
Whether you’re buying or selling, the process of turning a house over to a new owner can take several months.
Realtors offered these tips for people who are considering putting their house on the market, or looking at new ones:
• If you’re buying, look around to see what is available, get prices and an idea of the market. An online search can give you an idea, followed by a drive around the area. Then, meet with a local lender and see what you can prequalify for. Once that process is complete, work with a Realtor to look at houses. When you decide which one you want, make an offer to the seller.
• If you’re selling, be realistic. You may want to do touch-up work on your house, or major repairs if needed, to make it more attractive to the buyer. When you’re ready, contract the Realtor of your choice, who will discuss a contract to list the house.
The Realtor will have the house evaluated and compare it with similar properties that have sold in the past six months to determine an appropriate price. Don’t set the price too high. Once the contract is signed, the Realtor will put the “for sale” sign in the yard and put the house on multilist so all prospective buyers will have a chance to look at it. Most Realtors today now also are active in Internet sales.
The average house takes about 120 days to sell, although for some the waiting period is shorter. If the house has unusual features, it may take longer to attract just the right buyer. Usually the house sells 6 to 7 percent lower than the listing price, if that price is realistic.
The Realtors interviewed agree that local homes are appreciating by about 3 percent a year, or slightly less. That’s steady, but less than the ups and downs experienced in other parts of the country.
Wright also noted another trend he has observed in Tahlequah and Cherokee County.
“Over one-third of our buyers are coming in from out of this area. That’s growth. That’s a good sign,” he said.
