Oklahoma became the 46th state in the United States in 1907. Known as the Sooner State, it is 20th in size at 69,899 square miles and 28th in population at 3,911,338. The terrain consists of small mountain ranges, prairies, mesas, and forests. The primary industries are natural gas, oil agricultural products, aviation, energy, telecommunications, and biotechnology. In turn, the Oklahom real estate certainly experienced ups and down based on the health of these markets.
The largest employer in Oklahoma is the United States government, specifically Tinker Air Force Base which more than doubles the number of employees of the next two largest employers. Those employers are INTEGRIS Baptist Medical Center and Ki Bois Head Start (education) each with 10,000 employees. The state’s employment rate has seen an increase since the beginning of the year and is currently at 4.8 percent. The job market has seen a 0.14 percent improvement and the hope is that the trend will continue.
You can read last year’s information on the Oklahoma Housing Market here
The Oklahoma real estate market is very healthy, earning a rating of 9.2 out of 10 by Zillow with a total appreciation rate of 4.89 percent. The median listing price for the 2016 housing market is $154,000. The housing demand is likely to increase as the population increases. Between the 2000 and 2010 censuses, Oklahoma saw a population increase of 8.7 percent. They have continued to see a steady increase and the population is predicted to exceed four million by the year 2020. Housing market predictions could also see higher housing demands based on a March 2016 MarketWatch article listing Oklahoma City as the best real estate market for first time home buyers. In addition to home sales, there are over 2000 rental listings with a Zillow rate index of $996.
Influencing Factors for the 2016 Oklahoma Real Estate Market
- According to Zillow, the median home value is $114,100. That is 9.1 percent higher than 2015 and projected to increase and additional 3.2 percent during the upcoming year.
- The current foreclosure rate is 1 per every 10,000 properties. This is approximately half of the national average.
- Zillow’s rental rate index is $996, below the United States average of $1412.
- The APR in Oklahoma is between 3.17 percent and 3.41 percent, the average being 3.28 percent. This is on par with the average national rate of 3.29 percent.
- The potential problem that the Oklahoma real estate market could face is a decrease in home prices and values if oil prices continue to decrease.
Best Places to Live in Oklahoma
Oklahoma City is the capital of Oklahoma as well as the largest city (as well as the largest urban area statewide) with a population of 1,358,452. It is the 27th largest city in United States by population and 8th largest by size. Oklahoma City is home to one of the largest livestock markets globally. Tinker Air Force Base, the state’s largest employer, is located there. The largest employer in the city is the State of Oklahoma.
The Oklahoma City real estate market consists of 59 percent homeowners, 38 percent are single, and the average age is 35 years. The Zillow Oklahoma City home value is $134,600, 6.7 percent higher than 2015 and expected to increase 2.8 percent in the future. Trulia Oklahoma City lists the median price of homes at $178,000. Craigslist Oklahoma City includes listings for smaller two-bedroom homes ideal for starter homes or investment properties for $17,500. The opposite end is four and five bedroom homes priced anywhere from $250,000 to just under $1 million. The foreclosure rate is 0.48 per 10,000, a 1.8 percent decline from 2015. Zillow’s rate index for rent is $1145, a 3 percent decrease from 2015. The median rent is $1000. Trulia has listings for a one-bedroom apartment for $375 up to a four-bedroom house for $3695. Craigslist has rental listings from $395 for a studio apartment to $3500 for a four-bedroom house.
Tulsa is located in the northeast part of the state in the foothills of the Ozark Mountains. It is the art and culture center of Oklahoma. It is the second largest city in Oklahoma and 47th in the United States with a population of 603,403. Tulsa real estate is currently a neutral market scoring 7.5 out of 10 according to Zillow. The current home value is $107,300 and the median list price is $169,000. The home value is a 7.3 percent increase over 2015 and is predicted to continue increasing at 2.8 percent. Sixty-one percent of residents own their homes; 39 percent are single with a median age of 36 years. Home sale listings vary from smaller two-bedroom homes for $20,000 to significantly higher four to six bedroom homes in the multi-million-dollar range. The foreclosure rate is only one per every 10,000 homes. The rental rate index for Tulsa is $992, slightly lower than the Tulsa Metro rate of $1095. The index has increased by 1.5 percent since 2015. A one-bedroom apartment rents for as low as $376 while a five-bedroom house rents for up to $5000 per month.
Norman is only 20 miles south of downtown Oklahoma City. It is also the home of the University of Oklahoma. The Norman OK real estate market is warm market and very healthy earning a 9.7 out of 10 from Zillow. A population of 110,925 make it the third largest city in Oklahoma. Sixty-eight percent of the population own their homes. Forty percent of homeowners are single at an average age of 34 years. The current home value in Norman is $154,100 with a median list price of $230,000 and a median sale price of $162,500. The home value is 10.2 percent higher than that of 2015 and predicted to continue upward at a rate of 2.6 percent. Home listings vary from small one to three bedroom homes for $20,000 to $40,000 to four and five bedroom homes ranging from $1 million to $3.5 million. Foreclosures are about one per every 10,000 homes. Zillow’s rate index for rent is $1243 and the median rent is $1195. The rate index experienced a slight decrease in late 2015 and early 2016 but has since returned to previous numbers. There is a wide range of rental prices beginning at $525 for a one-bedroom and $650 for a two-bedroom apartment to upwards of $1000 for three to five bedroom houses, maxing out at just under $4000.
Edmond makes up the north side of the Oklahoma City Metropolitan area. The town began as a water and coaling station for the Santa Fe Railroad and was later settled during the 1889 Oklahoma Land Run. Today’s population of 81,405 makes it the 6th largest city in the state. A large majority of residents, 85 percent, own their homes. Twenty-six percent of that population is single and the median age is 36 years. The Edmond OK real estate market is currently cold receiving only a 7.9 out of 10 from Zillow. The current home value is $207,200 a 4.0 percent increase over 2015 and predicted to increase at a continued rate of 2.2 percent. The median sale price is $289,250, and the median list price is $295,000. Two to three bedroom homes sell for $70,000 to $100,000 while four to seven-bedroom home pass the million-dollar mark and often reach into the multi-million-dollar figures. As of May 2016, only one in every 10,000 homes was in foreclosure. The median rent is $1379 per month; Zillow’s rate index for rent is $1492. A one or two-bedroom apartment rents for $500 to $750 whereas a five-bedroom home located on a golf course rents for $5500 per month.
Stillwater was built on land that Washington Irving described in A Tour on the Prairies and is located north of Oklahoma City and west of Tulsa. The population is 45,688, the tenth largest city in the state. It is home to Oklahoma State University who is also the top employer with 6069 employees. Stillwater OK real estate has a current median home value of $136,450. The median sale price is $275,000 and median list price is $144,000. Just over half, 51 percent, of the population own their homes, 43 percent of those homeowners are single, and the median age is 32. Two to three bedroom homes can be purchased for under $40,000 while three to five bedroom homes may cost up to $800,000. The foreclosure rate in Stillwater has decreased 57 percent since May 2015. The median rent is $1100; the rate index from Zillow is $1245. Single rooms and one-bedroom apartments rent starting around $500, and a 3000 square foot house with four-bedrooms rents for about $1800 per month.