Home sales, resales, and construction were positively zany in 2021, with everyone involved under stress.
Buyers got swept into multiple-offer negotiations that had them paying even more than sellers were asking or appraisers were appraising. Sellers did, too, if they turned around and tried to buy, whether moving up or downsizing.
Builders built in a rare housing storm: Demand through the roof, mortgage interest rates just about as low as could be, but in a tight labor market with prices for construction materials shooting up, especially for lumber, which was especially volatile.
Real estate agents dealt with all of the above in 2021.
Gazing into an economic crystal ball:Here are some business trends to expect in 2022
What about 2022?
The Oklahoman asked the leadership of the four housing trade groups with headquarters in Oklahoma City: the Oklahoma Home Builders Association, the Central Oklahoma Home Builders Association, the Oklahoma Association of Realtors, and Oklahoma City Metro Association of Realtors.
Here's what they see coming next year.
Oklahoma Home Builders Association: 'We are just trying to keep up!'
• Jim Schuff, Vesta Homes, 2021 president of the Oklahoma Home Builders Association:
"What is the outlook for the single-family market for 2022? That question makes me think of a click bait Facebook post that says 'click on the reindeer's nose to see what 2022 will bring you.'
"Builders are still very busy, but it’s a different kind of busy. The market is still going strong, but today we spend a lot of time tracking down materials or trying to coordinate a material delivery with the workers.
"It’s difficult ordering a lumber package three weeks in advance and trying to make sure your framer can be there the same day it's going to be delivered.
"We have been ordering our brick and windows the same day that we receive our plans and often they are still not available when we need them 12 to 16 weeks later.
"It’s not just brick and windows. It's cabinets, appliances, garage doors, light fixtures, etc. It’s something different every day.
"The trades are equally as scarce and it’s not unusual that when you do get them on your job, what used to be a six-man crew is now a three-man crew. Needless to say, that means the job will take at least twice as long to complete.
"Prices have leveled off some. Lumber prices have come down considerably since peaking in May but are beginning to rise again. This spike in prices is just ahead of the doubled (9% to 17.9%) tariffs on Canadian lumber that we will begin to see soon.
"While lumber has come down, nearly everything else has gone up.
"The housing market is continually evolving, and we are just trying to keep up! Even though we can’t simply click on a reindeer’s nose and find out what the single-family market will be in 2022, all indications seem to show that it will be much like 2021."
Central Oklahoma Home Builders Association: Homes sell before built
• Dusty Hutchison, Alder Fine Homes, 2022 president of Central Oklahoma Home Builders Association:
"As we approach the new year in central Oklahoma, we are encouraged by the strong real estate market and low interest rates that we’ve experienced this past year.
"Our builders continue to sell new-construction homes faster than those homes can be built and completed.
"We are projected to end 2021 at more than 6,200 new home starts for the year in central Oklahoma. In fact, through November 2021, just over 5,900 new home starts have been recorded and that is 350 more starts than the year-to-date prior.
"I would anticipate 2022 to track about the same as this past year with new homes in high demand. However, our industry – along with many other industries – is still experiencing major supply chain challenges and materials shortages.
"From lumber and brick to HVAC materials and appliances, getting supplies and materials in-hand continues to be a challenge with delivery times being at an all-time high.
"And the cost of materials continues to soar which then increases the total cost of the entire build.
"These challenges will be sticking around for a while, so if you are in the market to build your dream home in 2022, we encourage you to work with your builder to plan as best as possible, but also remain understanding as the delays and cost increases are out of our hands.
"Your dream home is out there and we hope you find it — or build it — in 2022!
Related Links
OKC's housing market is on fire. Here's how that heat affects inventory, prices and more
Homebuyers are rushing to get mortgages before higher rates price them out
If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.
