An increasing number of buyers across the U.S. are turning their attention to Oklahoma’s real estate market. Renowned for its affordability, picturesque natural surroundings, dynamic urban centers, and thriving local economies, this destination stands out as an excellent choice for buyers searching for a new home.
There’s much to learn about the housing market in Oklahoma, and we’re here to help break it down for you. In this brief guide, we’ll describe distinctive features and current conditions of the Oklahoma housing market, along with what the future might hold.
Features of the Oklahoma Market
Oklahoma’s population of just under four million residents is relatively dispersed. No city in Oklahoma exceeds a population of 700,000, and the state has only four communities with more than 100,000 residents.
Traditionally, oil and agriculture have been the focal points of Oklahoma’s economy; however, recent years have seen significant changes, especially in urban areas. Presently, the economy is diversifying as numerous prominent businesses across the state offer exciting opportunities to residents. This, combined with the state’s renowned scenery, is attracting a new wave of buyers eager to establish a home in this up-and-coming region.
Oklahoma’s Current Real Estate Conditions
The current real estate market conditions are still quite favorable to buyers in Oklahoma. Oklahoma’s high affordability makes it a compelling choice, particularly for individuals priced out of other markets. According to the World Population Review, the median home price in Oklahoma was $253,200 in May 2023. While this marked a 5.1 percent increase year-over-year, this remained far below the national average, making Oklahoma the fifth-lowest-priced state in the country.
This summer, sales activity in the state declined from the levels observed in both 2022 and 2021. According to Redfin, 3,978 homes were sold in Oklahoma during July 2023. This marked a substantial year-over-year decrease of 18.5% from July 2022. However, prices continue to stay elevated, which remains a positive indicator for the market.
In Oklahoma’s most significant markets, prices have been steadily increasing, according to Redfin in July 2023. Oklahoma City’s median sale price was $278,000, demonstrating a 4.9 percent increase year-over-year. In Tulsa, the median sale price was $240,250, a nine-percent increase from last July.
In general, the housing market in Oklahoma is less competitive compared to many other states. Sales are down, prices are increasing at a normal rate, and affordability remains high. The state’s luxury market remains relatively small, with the majority of homes available for well under $1 million, and the cost per square foot across the state is modest.
What the Future Could Hold
Predicting what the future could hold for Oklahoma’s housing market is not a straightforward task, given the inherent unpredictability of future projections. However, current indicators are strong in Oklahoma’s most significant markets. In Oklahoma City, housing prices have been steadily rising without hitting an unsustainable level that would tip the balance toward a seller’s market, according to Norada Real Estate Investments in July 2023. Inventory is solid, and the market is favorable for both buyers and sellers.
In Tulsa, the outlook is similarly rosy. Prices have been gradually climbing, according to Norada in July 2023, and the city’s growing population and economy show that the city is heading in a great direction.
With desirable tax incentives, low costs within its major markets, and a steady inventory of homes, there is no reason to project any major decline for the Oklahoma real estate market.
