OKC Housing supply on the rise
Supply of homes is on the rise. In an unexpected market reversal we see the subtle signs of a potential cooling of a remarkably hot sellers market in the north west side of Oklahoma City.
Month supply of inventory is a metric used to identify the supply of homes available for a buyer searching the market. Historically 6 months or longer is a buyers market and less than 6 months being a sellers market. We have been well under the 6 months for the last 5 years and this summer we touched 2 months and below. However the end of summer data shows a strong rebound in supply with the north west side going up to 3 months supply, a figure we haven't seen for 2 years.
Should we be concerned? Short answer is no. We are still statically way lower than the 6 month gold standard for a buyers market. Also There are three powerful metric we must also take in to account when analyzing a market for heating or cooling.
The three most important metrics we consider when evaluating markets are:
– Job Growth – Population Growth – Affordability
Months supply of inventory when used correctly is a light indicator of what could be coming in the future. In a historically linear market like Oklahoma city softening of climbing prices is to be expected.
See chart below of the sales price median since 2006 for Oklahoma City demonstrating the linear nature of the Oklahoma City Housing market.