I’ve begun carrying a bullhorn that clips onto my belt.  It’s the one I use to shout from the freshly-decked roof tops that the sky is not falling in the Oklahoma City Metro real estate market despite what is happening in other major, more coastal markets in Florida, California, and Arizona.  I’ve commented many times both here, and in numerous stories in the media that new homes are still a solid and reliable investment in the Oklahoma City Metro, thanks to how unique our market here really is.  With job growth strong due to new companies moving into the area, wages up, unemployment down, interest rates still at all-time lows, and an astoundingly low cost of living, it doesn’t get much better than OKC as a place to live.  But if you pay attention to what the national media is reporting about other markets and assume the same applies here, you’re missing the trees for the forest, not the other way around.

Don’t just take my word for it.  Read what the local analysts have said just this month…

The Greater Oklahoma City Chamber of Commerce published an independent report, “State bucks trend; strength projected in home building,” which reports double-digit growth for housing construction in many areas in the Oklahoma City Metro.  The article points out that true numbers reveal that more metro-area building permits were pulled in February 2007 than in the same month of the past few, record-setting years, “which is a sign that Oklahoma is bucking the national trend,” to quote the article.

This week’s Oklahoman Business section carries two headlines ”Oklahoma housing prices rise above expectations,” and ”Home Prices Increase,” both of which provide more hard numbers supporting this interesting phenomenon we’re experiencing.  Sure, the number of permits being pulled in some recent months suggest that our market is finally catching it’s breath, and honestly, I welcome that.  Record numbers cannot be sustained forever, and what’s happening now is what should be happening.  It’s long overdue.

What should matter, though, to anyone considering the purchase of a home is what is happening to property values, and which is the smarter buy: a used home, or a new home? 

While other markets are experiencing a decrease in value of real estate, known as depreciation, the Oklahoma City Metro continues to enjoy healthy gains.  To take it a step further, new homes appreciate at a greater rate typically than older, used homes over 7-10 years old, which is when appreciation most often plateaus. 

So while more existing homes make their way to the market with attractive price cuts, as a buyer, ask yourself which is better:  A used home with someone else’s dirt and who-knows-what-else on the carpet, that you may feel, at least for a while, like you got for such a steal, but when in reality you just de-valued it by buying low, or…

A brand new home with the latest amenities and lower cost of ownership thanks to energy efficiency, that will enjoy healthy gains in value (earning you money) in our uniquely strong market, especially as other new homes are built around it?

The choice is obvious, so long as you look what is happening here, in our market.  New homes in the Oklahoma City and Edmond areas continue to remain a solid investment, and the numbers aren’t lying.

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