The 2015 Housing Market in the state of Oklahoma is a sellers market. According to Susanna Lorg, the president of the Oklahoma City Metro Association of Realtors, the most active price range is the entry-level buy-in range, which includes houses priced between $120,000 and $150,000. With inventory still low throughout the state, sellers maintain a serious advantage (particularly in the metro areas). In April of this year, realtors facilitated the sale of 1,765 homes on the Oklahoma housing market. That figure amounts to about 4% more compared to the same time last year.
The Oklahoma housing market has been at the forefront of the country’s oil and natural gas boom. The state is currently the fifth largest oil producer and the fourth largest gas producer according to the U.S. Energy Information Administration. Because of this expansion of the oil industry the real estate in Oklahoma has seen major benefits. In fact an analysis conducted by NerdWallet found a near perfect correlation between the state’s Home Value Index and the number of employees in the country’s oil and gas industry; as the number of gas and oil employees rose so did home values. The takeaway here is that the strength of the oil industry coupled with the state’s low property taxes have housing market predictions indicating that Oklahoma will continue to be a steady and strong investment.
Influencing Factors for the 2015 Oklahoma Housing Market
- The statewide median sale price per square foot is $82.25. This is lower than the national average of $130 per square foot.
- According to Trulia the median value of owner occupied housing units is $70,700. The national average is $119,600.
- Median household, family, and per-capita incomes are all below the national average.
- With oil prices dropping look for it to affect home values in some way. There is currently no data to show that there has been a negative impact thus far but it is something to keep an eye on.
- Oklahoma ranks third in the nation for the production of natural gas, 5th in the production of crude oil, and has the second greatest number of active drilling rigs. The state is a crucial energy provider for the country, which is good for the state’s job market.
- Because of its low tax burden Oklahoma has been rated one of the most business friendly states in the country. The state is home to four Fortune 500 companies and six Fortune 1000 companies. The state’s low taxes are a draw to business and homeowners alike.
- Oklahoma is 5th in cattle production and 5th in wheat production. It is the 27th most agriculturally productive state. With oil prices falling the state has a viable agriculture industry to rely on.
Best Places to Live in Oklahoma
Oklahoma City OK real estate is hot. Homeowners here may be in better shape than most in the country. On the website Zillow Oklahoma City has a median home value of $121,600, making it an affordable and accessible real estate market for young and first time homebuyers to enter. This home value amount has had an increase of 2% in the past year, and Zillow predicts that this number will rise another 1.6% in the upcoming year. It is also a $14,000 increase from the same time 4 years ago. Foreclosures in the city are 2 per 1,000, which is lower than the national average of 3.6. The percentage of delinquent mortgages in OKC, 4.1%, is also lower than the national average of 6%, and the city has one of the lowest percentages of underwater mortgages. The median list price is $174,000 on Zillow but the median sale price is $159,000. This means that the market still heavily favors the buyer.
The city’s economy and affordability make it a good real estate investment. On rival website Trulia Oklahoma City has household and family incomes higher than the state average. The city has jobs, and these jobs pay well compared to the rest of the state. Since the OKC housing market is considerably lower than the national average there are quality homes at great bargains, especially for out-of-state investors. The recent boom in the oil industry puts the OKC region in a position to succeed in the near future. The job market looks to continue to compliment the housing sector supply and demand. For those not ready to purchase a home the rental unit prices are reasonable as well. On websites Zillow and Craigslist Oklahoma City has a median rent price of $1,250, roughly around the national average.
Tulsa OK real estate has a market health index of 4.06 out of 10. The average home value is $103,700 with a sale price per square foot is $77.66. There has only been a slight increase in the past year of 1.7% and forecasts see another slow but steady increase in the upcoming year of 1.9%. Median asking price and median sale price numbers are fairly even showing that the market is not favoring the buyer over the seller, and vice versa.
Some of the pros to living in Tulsa: Cost of living, Arts and Culture, and attractive downtown area. Cons: High rate of violent crime, and extreme heat in the summer. Tulsa is a commercial, industrial, and cultural center located on the Arkansas River. It caters to a large agricultural and oil-producing market and several oil and gas companies are headquartered in the city. It is unique in that it mixes the characteristics of the historic south with the rugged western frontier. The low cost of living (Tulsa is 15% lower than the national average) makes Tulsa a great value for housing inventory.
Norman OK real estate has an incredible market health index of 9.55 out of 10. The city has a median home value of $146,000, higher than it’s neighbor to the north OKC. This value has seen a 2.3% increase in the past year and forecasts have this number continuing to rise another 2% in the next year. Norman residents have a higher median income (family and household) than the state average. Popular neighborhoods in the city are Townsite and Old Silk Stocking with average listing prices of $120,085 and $83,477, respectively. Probably the most positive aspect of living in Norman is it’s cost of living. Living in Norman is 12% lower than the U.S. average.
Lawton OK real estate is some of the most affordable in the state with a median home value of $75,300. That’s an average sale price per square foot of $64.09. The median home value has increased 3% in the past year and Zillow predicts that it will rise another 4.3% in the upcoming year. Median rent price is also extremely affordable at $750. The reason that home values are so low is that a large number of homes have negative equity, meaning that the homeowners owe more than their house is worth. So while this negatively affects current homeowners, it benefits first time homebuyers looking to purchase a home at a low price. Lawton is primarily a military town due to the proximity of Fort Still. This makes it a clean and fairly safe city, but perhaps not one known for entertainment or attractions. It does have access to the scenic views of the Wichita Mountains, which provide a picturesque backdrop for the city. Outside of the Goodyear plant the main employment base lies in government, health care, and education.
Edmond OK real estate has a market health index of 8.47 out of 10. Zillow has the median home value in the city at $200,000. This has increased 2% in the past year and is expected to rise another 1.7% within the next year. Very few homes in the city are foreclosed (a mere .4% per 1,000 compared to the national average of 3.6) and the 1.9% delinquent mortgage rate is also well below the national average. In February of this year Zillow showed an average list price of $315,000 and the average sale price of $215,000. This large disparity might be slightly skewed but still shows that buyers have a large advantage in negotiations. And homes are selling. Halfway through this year 2,016 homes have been sold. And the job market in Edmond is positive. Unemployment in the city is 3% (lower than the national average) and jobs have grown 1.36% already this year. One downside is Edmond’s cost of living; it’s 8.5% higher than the U.S. average. But Edmond does boast a low crime rate and is seen as a very family friendly area.