Today I’d like to talk a bit about the Del City real estate market and investment opportunities. Oklahoma is generally overlooked in favor of its much larger southern neighbor, Texas. However, Oklahoma has a number of points in its favor. The question for many is where in the state would be good for real estate investment. Is it Del City? Let’s learn more about Del City before giving our recommendations regarding Del City real estate investment.
Del City is home to twenty to thirty thousand people. However, the Del City housing market is much larger than this, because the city is a suburb of Oklahoma City, which is the capital of Oklahoma and the largest city in the state. More importantly, the Del City housing market is rapidly growing as the city’s suburbs expand outward.
The city’s population is several years younger than the national average. Is Del City going to be a sizzling real estate market for investors in 2020? Del City real estate appreciation rate in the latest quarter was around 0.15% which equates to an annual appreciation rate of 0.59%. Let’s learn more about the factors that make Del City a good place to invest if you’re considering real estate investment.
Real estate prices are deeply cyclical and much of it is dependent on factors you can’t control. Please note that there are many variables that can potentially impact the value of a home in Del City (or any other market) and some of these variables are impossible to predict in advance. In this article, our focus will be on the current state of the Del City real estate market and how it can affect the investors and home buyers.
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Del City Real Estate Market Forecast 2020 – 2021
What are the Del City real estate market predictions for 2020? Let us look at the price trends recorded by Zillow over the past few years. Del City has a record of being one of the best long term real estate investments in the U.S. Since 2015, the median home prices in Del City have appreciated by roughly 21.6% from $69,600 to $84,986, according to Zillow’s index.
In the past year, the Del City real estate appreciated by 8.8%. The latest Del City real estate market forecast is that the home prices will continue to increase by 5.3% – in the next twelve months. The latest real estate data from Zillow shows that the current median home value in Del City is $84,986. Del City is currently a hot seller’s real estate market. The demand is exceeding the supply, giving sellers an advantage over buyers in price negotiations. In other words, there are less homes for sale than there are buyers in the marketplace. Zillow reports that 13.1% of the listings in Del City had a price cut in Jan 2020.
Here is the Del City real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 5.3% till Jan 2021.
Del City Real Estate Market Trends
Analyzing real estate data from multiple sources gives us a much broader perspective of the direction in which a market is moving. We shall now discuss some of the most recent housing trends in the Del City area from multiple sources and compare it with past couple of years. We shall mainly discuss about median home prices, inventory, economy, growth and neighborhoods, which will help you understand the way the local real estate market moves in this region.
Del City is a minimally walkable city in Oklahoma County with a population of approximately 21,038 people. In the past ten years, the annual real estate appreciation rate has amounted to 0.89% in Del City, according to NeighborhoodScout.com. After cooling off a bit in 2018, the Del City housing market bounced back last year. High demand and low inventory led to the huge rise in home prices in 2019. Currently, the inventory remains very tight and the prices will continue to rise.
On average, homes in Del City sell after 24 to 30 days on the market. In a healthy, balanced market, it would take about six months for the supply to dwindle to zero. In terms of months of supply, the Del City market can tip to favor buyers if the supply increases to more than six months of inventory. However, looking at the current trends, we don’t see things stopping anytime soon. The inventory will decrease further and there may be a 5 to 6 percent increase in home prices inDel City by Jan 2021.
Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate. Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units. With 2020 being, theoretically, in the middle of a boom, there’s still 4 years for residential construction to surge. Most likely, a housing shortage will remain in 2020, keeping home prices high.
According to Neighborhoodscout.com, a real estate data provider, three and four bedroom single-family detached are the most common housing units in Del City. Other types of housing that are prevalent in Del City include large apartment complexes, duplexes, row houses and homes converted to apartments. The median house price in Del City is $85,873, which indicates that home prices in Del City are well below the national average for all cities and towns in the United States.
Here is a snapshot that shows the median home values in the some of the popular neighborhoods in or around Del City.
Del City Real Estate Inventory And Sales Data
Del City has a mixture of owner-occupied (57.13%) and renter-occupied (42.87% ) housing units. In the past month, 27 homes have been sold in Del City on Redfin.com, a national real estate brokerage. Additionally, there were also 0 condos, 1 townhouse, and 1 multi-family unit for sale in Del City last month. The median listing price is around $98,170. The average sale price of a home in Del City was $96K last month, up 16.4% since last year. The average sale price per square foot in Del City is $80, up 12.7% since last year.
According their statistics, the Del City housing market is moderately competitive. Homes sell for about 2% below list price and go pending in around 15 days. A hot listing in the market can sell for about 1% above list price and go pending in around 7 days.
Currently, there are 16 homes for sale in Del City on Zillow, an online real estate database company. Additionally, there are 48 homes for rent. Under potential listings, there are about 3 Foreclosed and 21 Pre-Foreclosure homes. These are the delinquent properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS). The median list price per square foot in Del City is $80, which is lower than the Oklahoma City Metro average of $122. The median price of current listings in Del City is $101,500 and the median price of homes that have been sold is $81,900. The median rent price in Del City is $850, which is lower than the Oklahoma City Metro median of $1,100.
At present, Trulia has 113 resale and new homes for sale in Del City, OK including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. The median sales price of homes in Del City is $89,000 and homes are selling for about $77/sqft.
There are currently 24 homes for sale and 36 homes for rent in Del City OK on Realtor.com, a real estate listings website. According to their statistics, the median list price of homes in Del City, OK was $118,400 in January 2020, trending up 24.6% year-over-year. The asking price of single family homes in Del City can start from $65,000 and can go up to $175,000. Parkview has a median listing price of $142.3K, making it the most expensive neighborhood in Del City. Oakcliff is the most affordable neighborhood, with a median listing price of $77K.
| Homes For Sale | 24 |
| Homes For Rent | 36 |
| Median Listing Price | $118,400 |
| Median Sale Price | – |
| Sale to Asking Price Ratio | – |
| Median Rent | $945 |
| New Listings | 3 |
| New Construction Houses | 0 |
| Median Listing Home Price/Sq Ft | $83 |
| Home Price Range | $30K to $574K |
| Most Expensive Neighborhood | Parkview |
| Most Affordable Neighborhood | Oakcliff |
As per the Del City foreclosure data by Zillow, in Del City 3.7 homes are foreclosed (per 10,000). This is greater than the Oklahoma City Metro value of 1.3 and also greater than the national value of 1.2. The percent of delinquent mortgages in Del City is 2.7%, which is higher than the national value of 1.1%. The percent of Del City homeowners underwater on their mortgage is 10.8%, which is higher than Oklahoma City Metro at 7.6%.
Is Del City a Good Place For Real Estate Investment?
Now that you know where Del City is, you probably want to know why we’re recommending it to real estate investors. Investing in real estate is touted as a great way to become wealthy. Is Del City a Good Place For Real Estate Investment? Many real estate investors have asked themselves if buying a property in Del City is good investment? You need to drill deeper into local trends if you want to know what the market holds for the real estate investors and buyers in 2020.
If you are looking to make a profit, you don’t want to buy the most expensive property on the Del City real estate market and expect to make a good profit on rents. Perhaps you are looking for a slightly different hold-over, an investment property in Del City that you might move into or sell at retirement in the future. Either way, knowing your profit potential and purpose is the first thing to consider.
Let’s take a look at the number of positive things going on in the Del City real estate market which can help investors who are keen to buy an investment property in this city.
Del City Real Estate is Very Affordable
The biggest benefit of Del City real estate investment is the cost of housing. The average home in the Del City real estate market costs 85,000 dollars. The average home in the Del City housing market is a third cheaper per square foot than a similar property in Oklahoma City. Nor is the Del City real estate market pulling a Detroit. The housing market here is hot. Home prices went up almost 10 percent in 2019, and they’re predicted to increase five percent in 2020.
This is why you can earn a profit on a rental property in the Del City area though rents hover around 850 dollars a month. Note that this rental rate is only 250 dollars less than the 1100 dollar a month average for the Oklahoma City metro area or roughly a fifth less. That results in higher ROI on a Del City investment property than one in Oklahoma City. And you could buy several rental properties in Del City for the cost of one home in hotter regional housing markets like Austin, Texas.
The Del City housing market presents some interesting opportunities. You might be able to find bargains among those who just got orders to relocate. Furthermore, over ten percent of homes in the area have negative equity, while the delinquency rate on mortgages is twice the national average. That means you can almost certainly find deals from several different classes of distressed sellers. And that presents the opportunity to get single family homes for far less than the already low average property prices we’ve mentioned. However, there are very few multi-family properties in the Del City area.
The Job Growth in Del City
The Del City housing market is dominated by Tinker Air Force Base. This creates a large number of recession-proof jobs. It also creates a massive renter pool that will never buy houses, because they don’t know when they’ll be stationed elsewhere. That is one reason to consider Del City real estate investment, especially if you can find single family homes near base.
Another point in favor of the Del City real estate market is the diversified Oklahoma City job market. It is home to more than food processors, civil service jobs and several universities. This list but is not limited to the University of Oklahoma, Oklahoma Christian University and Rose State College. The city is located on the I-35 corridor, the major north-south interstate in this part of the country.
Many manufacturers build here to have easy highway access to the rest of the country. As the state capital, it is home to the largest healthcare systems and the only level 1 trauma unit in the state. The diversified job market leads many Oklahoma residents to move to the area. However, the area has slightly lower than average pay, so fewer people can afford to buy homes. Median income for residents in the Del City housing market is 47K, 3K less than the state average.
Quality of Life
Del City gets a B- from Niche.com on quality of life. Housing is relatively affordable, but it isn’t as safe as it could be. However, everything is relative, and when it comes to real estate, the comparison is going to be made to surrounding cities. Oklahoma City’s crime rate is similar to that of Del City. Housing isn’t that much higher in Oklahoma City. Niche gives OKC higher marks for nightlife, but that doesn’t matter to the families that make up the majority of single family home buyers. People move here to be closer to work or afford a large home with a yard. Or they rent out a Del City real estate investment property.
The Legal Climate
Oklahoma in general is landlord friendly. The state has specific security deposit requirements, but you don’t have to pay interest on them. Written rental agreements are generally required, but you shouldn’t be renting out a Del City real estate investment property without a written lease. It is very difficult to enforce restrictions on pets or late fees without one. Oklahoma doesn’t limit late fees. The state doesn’t require landlords to have a rental license. And while the Del City real estate market isn’t as friendly to property owners as Texas, it is far better than Kansas. That state is actually tenant friendly.
The Tax Climate
Oklahoma has a relatively low tax burden. It has a lower income tax, though it sometimes loses out to Texas, which doesn’t have a state income tax. Owners of a Del City real estate investment don’t care about the high sales tax rate. For example, property investors don’t care about car registration taxes that approach 10 percent of the cost of the vehicle. Instead, they’ll appreciate the low property taxes charged in the Del City housing market. And these savings are compounded on the lower home prices in the Del City real estate market. The average property tax bill in the Del City housing market is less than a thousand dollars and just under 0.9 percent of the property’s value.
Investing in Del City Real Estate: Advice For New Buyers
Maybe you have done a bit of real estate investing in Del City, Oklahoma but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold. Del City is an excellent place to invest in real estate if you’re looking for an affordable entry point. Properties are affordable, rents offer decent but modest returns, and the housing market is certain to appreciate. It isn’t as romantic as saying you bought homes in San Francisco or New York City, but you don’t have to worry about sky-high tax bills or rent control limiting your returns.
A good cash flow from Del City investment properties means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt. Therefore, finding a good Del City real estate investment opportunity would be a key to your success. If you invest wisely in the Del City real estate, you could secure your future.
The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. There should be a natural and upcoming high demand for rental properties. Demand would raise the price of your Del City investment real estate and you should be able flip it for a lump sum profit.
The neighborhoods in Del City must be safe to live in and should have a low crime rate. The neighborhoods should be close to basic amenities, public services, schools and shopping malls. Some of the best neighborhoods in or around Del City are Central Oklahoma City, Ranchets, Akers Park, Parkview, Oakwood and Oakcliff.
As with any real estate purchase, act wisely. Evaluate the specifics of the Del City housing market at the time you intend to purchase. Hiring a local property management company can help in finding tenants for your investment property in Del Cit. If it is your first time to invest in Del City real estate, then you would have to be aware of common beginner’s mistakes. Beginners would usually follow the media, buy a property and wait for its value to increase. This could be risky. Real estate investing requires research. We recommend doing your own research or hiring a real estate investment specialist for guidance.
Other Good Markets To Invest in Real Estate in 2020
Another housing market to invest in real estate is Aurora in Colorado. Aurora, Colorado is more than a growing suburb. It is a large, thriving city in its own right. It has a bright future, and it is poised for rapid appreciation and increasing rental rates. This is a good time to make an investment in the Aurora real estate market.
Bellevue is another hot market to choose for real estate investing. The Bellevue housing market has a number of points in its favor. It has strong market fundamentals that justify its high prices. The question is whether you can afford to buy property in the Bellevue real estate market and can get a high enough return on the investment.
Bellevue gets points for quality of life. It received an A plus from Niche.com. And it has an excellent balance of attractions for single adults and families. It is safer than Seattle, which is important to everyone. Yet it has top tier schools and a great nightlife. For example, Bellevue has the third best public school district in the United States.
Let Us Help You In Buying Your First Investment Property In Del City
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing and interest rates.
NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability. Consult with one of investment counselors who can help build you a custom portfolio of turnkey cash flow rental properties in the various growth markets across the United States.
All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching top real estate growth markets and structuring complete turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.
Remember, caveat emptor still applies when buying a property anywhere. The aim of this article was to educate investors who are keen to invest in Del City real estate in 2020. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
References:
- About Del City
https://en.wikipedia.org/wiki/Del_City,_Oklahoma - Job market
http://www.city-data.com/city/Del-City-Oklahoma.html - Quality of life
https://www.niche.com/places-to-live/del-city-oklahoma-ok/ - Legal climate
https://www.avail.co/education/laws/oklahoma-landlord-tenant-law - Taxes
https://taxfoundation.org/state/oklahoma/
https://okpolicy.org/resources/online-budget-guide/revenues/an-overview-of-our-tax-system/how-oklahoma-taxes-compare/ - Latest Market Trends & Forecasts
https://www.zillow.com/del-city-ok/home-values/
https://www.redfin.com/city/5132/OK/Del-City/housing-market
https://www.realtor.com/realestateandhomes-search/Del-City_OK/overview - Map
https://www.google.com/maps/place/Del-City,+OK/
