Although the last day for home buyers to enter into contracts and qualify for a tax credit was April 30, area home sales for May continued to rise as closings worked their way through the system.

The Greater Tulsa Association of Realtors said Thursday that 1,151 homes changed hands in May, a 3 percent increase from April’s total and a 17 percent boost from the number for May 2009.

The year-to-date total stands at 4,290 home sales, which is 271, or 6.7 percent, more than the total for the first five months of 2009.

Association President Jack Hodgson said the federal tax incentives were a big reason for the increase.

Although home sales under contract had to close by Wednesday to qualify for the tax credit of up to $8,000, many people across Tulsa and the country missed the deadline. But Congress passed a bill Wednesday to extend the deadline to Sept. 30. President Barack Obama is expected to sign the extension.

Hodgson said other positive conditions contributed to strong May home sales in the Tulsa area, including a gradually improving economy and ever-lower interest rates. The average 30-year, fixed-rate home loan hit a record low of 4.58 percent this week, the mortgage lender Fannie Mae reported.

“The financing costs are just so inexpensive now,” Hodgson said. “If a person’s looking to buy a home, the numbers won’t get much better.”

Home sales around the country didn’t fare as well as in Tulsa during May, reaching a seasonally adjusted annual rate of 5.66 million units. That’s down 2.2 percent from 5.79 million units in April, the National Association of Realtors reported Thursday.

Although the tax credit helped the numbers in April and May, Hodgson warned of a possible hangover, as buyers who would have normally bought houses in June may have accelerated their plans.

“We took an awful lot of capable buyers who decided to take advantage of the tax credit then rather than wait another month or two,” he said.

The number of pending contracts in the Tulsa metropolitan area fell significantly to 778 in May, 48 percent less than April’s count and 24 percent less than the total for May 2009.

Pending sales for the U.S. as a whole dropped as well. The NAR’s Pending Home Sales Index dropped 30 percent to 77.6 based on contracts signed in May from a reading of 110.9 in April. The index is 15.9 percent less than its reading for May 2009.

Local home prices continued to strengthen in May, reaching an average of $155,286 and a median of $129,500, both ahead of April’s figures. A year earlier, the average price was $151,394, with a median of $135,000.

Nationally, the median price of an existing single-family home was $179,400 in May, which is 2.7 percent more than a year ago, NAR reported.

The Associated Press contributed to this story.
Original Print Headline: Home sales are up again

Robert Evatt 581-8447
robert.evatt@tulsaworld.com By ROBERT EVATT World

Read more from this Tulsa World article at http://www.tulsaworld.com/news/article.aspx?articleid=20100702_32_E1_Ahomeo187142

Mortgage rates drop to another low

By ALAN ZIBEL Associated Press
Published: 7/2/2010 2:22 AM
Last Modified: 7/2/2010 5:36 AM

WASHINGTON — Mortgage rates have sunk to the lowest level in more than five decades, but consumers aren’t rushing to refinance their loans or buy homes.

Mortgage company Freddie Mac said Thursday the average rate for 30-year fixed loans sank to 4.58 percent this week.

That’s down from the previous record of 4.69 percent set last week and the lowest since the mortgage company began keeping records in 1971. The last time they were cheaper was the 1950s, when most long-term home loans lasted just 20 or 25 years.

Rates have fallen over the past two months. Investors wary of the European debt crisis and the stock market have shifted money into the safety of Treasury bonds, driving down yields. Mortgage rates tend to track the yields on long-term Treasurys.

On Wednesday, the yield on the benchmark 10-year Treasury note dropped to 2.95 percent. That was the first time it has fallen below 3 percent since April 2009, when the markets were beginning to recover from the financial crisis.

But tighter lending standards and declining home equity have made it difficult for many borrowers to refinance. Many who do qualify have already done so over the past 18 months.

Applications for mortgages rose nearly 9 percent last week from a week earlier, the Mortgage Bankers Association said Wednesday. But they remain at only about half the level of early 2009 and a far cry from the refinancing boom of 2003 through 2005, when home prices were soaring and borrowers were able to pull equity out of their homes to pay for home renovations, boats and vacation homes.

Many Americans owe more on their mortgages than their homes are worth and can’t refinance through the usual channels. The Obama administration has launched programs to help borrowers refinance if they owe up to 25 percent more than their home’s value and have their loans guaranteed by mortgage giants Freddie Mac or Fannie Mae.

About 291,000 homeowners have participated as of March — a small fraction of the estimated 15 million homeowners who are “underwater” on their mortgages.

“I expect to see pockets of re-fi activity versus an overall wave,” said Scott Buchta, chief mortgage strategist with Braver Stern Securities. “The problem is, for many borrowers, they don’t have the equity in their homes.”

If rates drop below 4.5 percent, Buchta said, that might spark a burst of refinancing activity. But it would be limited to people who refinanced or bought homes over the past year and have rates of 5 percent or higher.

To calculate the national average, Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.

Rates on 15-year fixed-rate mortgages fell to an average of 4.04 percent, the lowest on records dating to September 1991 and down from 4.13 percent a week earlier.

Rates on five-year adjustable-rate mortgages averaged 3.79 percent, down from 3.84 percent a week earlier. That was also the lowest on Freddie Mac’s records, which date back only to January 2005.

Average rates on one-year adjustable-rate mortgages rose to 3.8 percent from 3.77 percent.

The rates do not include add-on fees known as points. One point is equal to 1 percent of the total loan amount. The nationwide fee for all types of loans in Freddie Mac’s survey averaged 0.7 a point.

Refinancing is generally considered worthwhile for homeowners who can shave at least three-quarters of a percentage point off the rates they pay now and plan to stay in their homes for a long time.

Besides the fees for the mortgage broker or lender, there are fees for title insurance, a new appraisal, document processing and other charges. In “no fee” mortgages, costs are often added to the loan amount, or the interest rate is higher.

Original Print Headline: Mortgage rates hit record low again

Read more from this Tulsa World article at http://www.tulsaworld.com/news/article.aspx?articleid=20100702_32_E1_WASHIN274352

Tulsa Business Journal Article

Country to Cosmopolitan
Ryan Daly
6/22/2009

Jenks’ transformation from sleepy suburb and high school football mecca to full-on metro is picking up speed.
Developer Duane Phillips, owner of Oak Properties Development Company, Phillips Construction LLC and co-owner of Phillips Slaughter Rose LLC, along with public officials announced this month the Village on Main, an enormous complex that within a fast-paced construction time line of three years will completely change the face and scale of the city.

The $80 million development will sit sprawled across the once fairly nondescript riverfront entrance to the city, extending into Jenks as far as Seventh Street, and will include 150,000 SF of retail and restaurants, 100-plus units of residential, 120,000 SF of professional office space, a Hillcrest Utica Park Clinic health care facility and a 100-plus room hotel and community events center.

Demolition of the houses that once dotted the footprint has already begun, clearing space for the 22,000-SF clinic. Construction is expected to start by August.

Mayor Vic Vreeland sees the development as a much-needed step forward for the city.

“Our existing Main Street business owners will enjoy the 1,600-foot extension of Main Street commerce through increased pedestrian traffic and the linkage of the River Parks trail system, which will flow through the development,” Vreeland said. “Through collaborative efforts of Village on Main LLC, Jenks City Council, Jenks Planning Commission and community stakeholders, we are able to provide this one-of-a-kind destination on the west bank of the river.”

Tulsa Business Journal Article

Retail Growth Continues in Glenpool
Tulsa Business Staff
8/26/2009

Just over a year after opening a 205,000 SF prototype Walmart, retail growth continues in Glenpool, according to the Web site.
Site work is underway for Phase II at the Southwest Crossroads site at 121st Street and U.S. 75.

City officials and Tapp Development of Edmond, developer of the Walmart anchored project, broke ground officially on Phase II of the development back in March of this year. Phase II includes additional retail space plus two hotels and a 60,000 square foot municipal building and conference center.

Tenants in the first phase of the retail center, either open or finishing construction, are Supercuts, U.S. Cellular, Papa John’s Pizza, South County Wine and Spirits and a restaurant.

Negotiations are in process with several tenants for the remaining space. When completed, the retail center at Southwest Crossroads will total approximately 100,000 SF.

Tulsa in Top 10 Most Affordable Markets
Tulsa Business Staff
11/16/2009

The University of Tulsa and its namesake city rank sixth on Coldwell Banker’s annual College Home Price Comparison Index.
The list compares the cost of similar 2,200-SF, four bedroom, two-and-a-half bathroom homes near the 120 Football Bowl Subdivision schools.

The average cost of such a home in Tulsa is $154,800, $32,915 more than the most affordable market, Akron, Ohio.

Oklahoma State University in Stillwater ranked 15th with an average price of $173,667, and the University of Oklahoma in Norman ranked 39th with a price of $204,475.

Tulsa Business Journal Article

Jenks Chamber of Commerce Newsletter

JENKS NAMED ONE OF THE TOP PLACES TO LIVE IN THE U.S.

Once again, Jenks receives national recognition. Relocate America named Jenks in the Top 100 Places to Live. This selection was determined based on the local economy, housing, education, employment, crime, parks and recreation, environment, sense of community and other home-buying statistics.

This year’s selection criteria focused on the future growth and ability to rebound in this national economy. Communities with visionary government and business leadership continually striving to enhance their local economies were selected.

“Despite the negative condition of the national housing market, Jenks average housing values steadily increased over the past five quarters, and with major commercial developments on the horizon, Jenks continues to be a community of progress,” said Annette Bowles, President. “One of the reasons for our community’s success is the collaborative efforts of the Jenks Chamber of Commerce, City of Jenks, Jenks Public Schools and Tulsa regional partners.”

“The City of Jenks is pleased again to receive the honor of being one of the best places to live,” said Mayor Vic Vreeland. “Now recognized as one of the Top 100 Places to Relocate as well as one of Money Magazine’s Best Places to Live, others are seeing what our residents already know — that Jenks emphasizes quality of life in our planning and governance whether it’s in our schools, neighborhoods, downtown or riverfront.”

Only three cities in Oklahoma were included in this year’s ranking, Tulsa claims the top spot on the list with Oklahoma City ranking 10th. To view Relocate America’s Top 100 Places to Live list, visit www.RelocateAmerica.com.

After announcing a plan that would have allowed first time homebuyers to use a special tax credit to cover the 3.5% required down payment on an FHA-insured loan, the Dept. of Housing and Urban Development apparently had second thoughts.

Late last week HUD released a newly remodeled plan that does not allow the first-time homebuyer tax credit to be used for the down payment. Seems there was plenty of push back that allowing borrowers to land a mortgage without any “skin in the game” was not exactly a great idea. What’s amazing is that the proposal even got floated in the first place; the notion that taxpayer dollars would have been on the line for mortgages that required no down payment was a bit of a head spinner.

What HUD finally settled on was that lenders can essentially advance qualified home buyers the value of their tax credit today to reduce their mortgage costs, but only if the borrower can bring a minimum 3.5% down payment to the table. Approved uses of the tax credit include paying for closing costs, making a larger down payment (to thereby reduce the monthly mortgage cost) or buying down the interest rate by paying points. The real value of the new rule is that eligible homebuyers can now “use” their tax credit today, rather than having to wait to recoup the value of the credit when they file their 2009 federal tax return in early 2010.

Basically, if you meet the eligibility rules you can now get a maximum of $8,000 advanced to you to buy a home. Single homebuyers with income below $75,000 and married couples who file a joint return with income below $150,000 are eligible for the max tax credit. (A limited credit is available for individuals with income between $75,000-$95,000 and joint filers with income between $150,000 and $170,000; the credit completely phases out above those income levels.) Anyone who has not owned a primary residence for three years is considered a first-timer but to grab the tax credit you must close on an FHA-insured loan before December 1 of this year.

– Carla Fried

The latest numbers for home prices in Oklahoma look promising.

The Federal Housing Finance Agency says Oklahoma ranks second in house price appreciation in the first quarter.

Comparing cities, Tulsa is 20th for the highest rate of house price appreciation.

Oklahoma City is 25th.

Nationwide home values are down.

Source: KJRH website:http://www.kjrh.com/news/state/story/New-Oklahoma-housing-numbers/VdyD5XPgikeLXJQ38vgnpw.cspx

Area home sales improve slightly in April

By ROBERT EVATT World Staff Writer
Published: 6/3/2009 2:22 PM
Last Modified: 6/3/2009 2:22 PM

Tulsa-area home sales for the month of April improved for the third time in a row, though the pace didn’t quite match the same time last year.
The 908 homes sold were 1.3 percent above March, though they were 8.9 percent below April 2008, according to figures from the Greater Tulsa Association of Realtors.

Harriet Dunham, president of GTAR, said the performance shows the Tulsa-area home market continues to regain strength.

“Consumers are out looking, and we’re starting to get busy,” she said.

Dunham said the boost was a combination of increased consumer confidence, first-time homebuyer tax credits and the annual springtime sales surge.

Both the average and median sales prices improved significantly for the month and year, with the median at $128,000 and the average hitting $151,876.

Tulsa housing market gets high rating

By ROBERT EVATT World Staff Writer
Published: 1/9/2009 6:47 PM
Last Modified: 1/9/2009 6:47 PM

Tulsa’s housing market will lose 1.1 percent of its value before it starts to recover by the end of the year, according to an estimate by Economy.com, a division of Moody’s.
Despite the expected depreciation, the prediction was good enough to tie Tulsa with Houston for the sixth-best performing home market during the recession.

The survey, published on Forbes magazine’s online component, indicates that U.S. home values as a whole will drop 15 percent by the time things hit bottom late this year or sometime in 2010.

Forbes’ article on the survey singled out Tulsa for having relatively low home value growth since 2004, moving from an average of $100,000 to $130,000.

As a result, home prices in Tulsa and other metro areas cited in the survey don’t have nearly as far to fall compared with housing markets that skyrocketed during the housing boom, Mark Zandi, chief economist for Economy.com, said in the Forbes article.

“None … participated in the housing boom,” he said. “Some are down just because the economy is bad.”

Of the 25 areas listed, none showed gains in home values in the near future and only two — McAllen, Texas, and Syracuse, N.Y. — were predicted to have no change in prices.

The figures are based on comparisons between home prices during the second quarter of 2008 and price projections through 2011, and examined metro areas larger than 500,000 people.

By ROBERT EVATT World Staff Writer