TULSA, Okla. — Interest rates are rising and the cost of buying a home nearly doubled within the last year, but there are two cities in Oklahoma where starter homes are still considered affordable.
One of those, Oklahoma City. The other, right here, in Tulsa. A new CNBC report said Tulsa is one of only four cities in the country where average Americans can afford a starter home.
Real estate experts in Tulsa said it's more complex.
“First time buyers were not even able to purchase homes for the last couple of years because people were paying cash and they were just getting priced out of the market," Karen Gurley, with First Oklahoma Mortgage said. Gurley is a lender with First Oklahoma Mortgage. She said that's been the reality for hundreds of her clients. She said interest rates in January were around 3 percent, but since they've risen to 7.1 percent, she's seen how that's impacted a buyer's ability to afford a home.
“If they were pre-qualified last year, now, everything’s changed. The amount that they qualified for is definitely less than what they could have got in January," Gurley said.
Mulready said a starter home in Tulsa ranges between $100,000 and $200,000. She showed 2 News a three bedroom, one and a half bath, and two car garage home located near the 31st and Sheridan area.
“We’re going to be listing it at 179,009.00 and we’ll go live tomorrow, and I do expect that we’ll have multiple offers on this," Mulready, Realtor with Coldwell Banker Select said.
2 News' Jeanette Quezada looked on Zillow and there are 118 homes listed that are $100,000 or less, meaning the mathematical "median" of a starter home does not match what realtors will tell you is realistic.
However, Gurley said now is the time first time homebuyers have a chance in the housing market because investors are not buying at this market value. She said although interest rates are high buyers can always refinance later.
“A lot of people are saying marry the home, date the rate," Gurley said.
“We are still so affordable, at an average house price of $200,000 and what you could get for $200,000 as opposed to other cities in the country, that’s totally priced out," Mulready said.
2 News asked how many starter homes are on the market in Tulsa.
“There are 147 active homes in that price-range, in Tulsa City Limits. There are 172 pending. 850 have closed in the last six months," Mulready said.
Gurley said potential home buyers want to save up to five percent for your down payment. She also said you want to build extra padding for inspections and closing costs.
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