By Robert Barron, Staff Writer
Although there are fewer houses than normal on the market locally, the next few years are looking good in Enid.
Prices are expected to rise over the next couple of years because of industrial expansions and the low number of houses on the market.
In 2005, there were 1,010 residential properties sold, according to Enid Metro Association of Realtors, which covers six counties, including Garfield. The total amount of sales was $92,589,943, making the average price of a house $91,673.
The average cost of one- and two-bedroom homes totaled $37,705, and 179 were sold.
For the 633 three-bedroom homes sold, the average price was $87,705.
Four-bedroom houses sold for an average of $158,425 in 2005. There were 181 sold.
Seventeen condos were sold in 2005 at an average cost of $100,711.
The inventory is down from the average of the last 10 years, said Carolyn House, association executive of Enid Metro Association of Realtors.
David Ritchie, president of the Enid Metro Housing Authority, said a survey of Enid area businesses in September 2004 shows substantial anticipated job growth.
“Everyone knows that Advance will add 300 jobs, and Vance Air Force Base will add 99 jobs and the ethanol plant will add 30 jobs,” he said.
The survey of 50 of the largest companies in the Enid area produced a conservative estimate of 283 jobs in addition to those at Advance, the ethanol plant and Vance.
That totals 712 jobs for the next two years.
“We’re looking at substantial growth in the community,” Ritchie said.
Ritchie predicted more affordable homes, those in which payments more closely equal rent costs, will be a large part of the market.
“I expect every rental unit to go up,” he said. “Rents increase ,and properties for sale accelerate in price faster that the rest of the market.”
Mid- and upper-priced homes also will increase, but not as much as the rest of the market, he said.
Long-term interest rates probably will not increase substantially, he said.
The rate this week for a $100,000 home is 5.875 percent, he said, and 6 percent on a $50,000 home on a 30-year, 90 percent note.
The National Homebuilders Association does not see substantial slowing of home construction until interest rates go beyond 7 percent.
“It’s not getting cheaper to build in (terms of) cost of land and improvements and in putting in subdivisions,” Ritchie said. “Those costs have gone up 20 percent to 25 percent in the last three to four years.”
In 2005, there were 59 new single-family homes built in Enid at a cost of $12.04 million. That compares to $13.9 million in 2004 on 77 single-family dwellings and 53 homes for just more than $9 million in 2003.
Construction of two-family dwellings totaled five last year at a cost of $1.13 million. Only one 47-unit apartment complex was constructed at a total cost of $2.2 million.
The average cost of a new house in 2005 was $204,000 for 59 homes. The previous year, the average cost of a new house was $180,000 for 77 new homes.
In 2003, there were 53 new homes at an average cost of $170,000. New home costs in 2002 averaged $185,000 for 77 new homes.
Nationally, housing experts expect the market to “normalize.”
David Lereah, National Association of Realtors chief economist, said current trends in the housing sector are good.
In fact, a cooling down may be healthy for the long-term growth of the industry.
After setting a fifth consecutive annual record, projected at 7.10 million units for 2005, existing home sales are forecast to slow by 4.4 percent to 6.79 million this year.
“A lot of demand has been met over the last five years, and a modest rise in mortgage interest rates is causing some market cooling,” Lereah said.
By Robert Barron, Staff Writer
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