Learn more about the housing market in Oklahoma

Every state is unique when it comes to the real estate market. That’s why it’s critical to understand the market you live or operate in. Whether you’re renting, buying, or selling, it will impact many aspects of your life.   

Oklahoma Housing Market Overview  

Though it is nicknamed “the sooner state” for inhabitants who entered the territory before the government’s appointed time in the 1800s, Oklahoma is also known for its boundless landscapes, rich history, and culinary heritage. For this reason, industry in the state is diverse, with both traditionally rural and urban sectors making an impact on the state’s GDP. 

At the beginning of the year, experts predicted that the housing market Oklahoma would experience in 2024 would involve a more balanced real estate market with a specific ratio of home sales to active listings. In 2023, Oklahoma saw a spike in home prices and mortgage rates fueled by low inventory relative to the number of buyers. According to Redfin inventory in Oklahoma has increased year-over-year by 8.1% (new listings). Additionally, the total number of homes for sale increased almost 17%, indicating that supply is growing overall. 

Home values in Oklahoma increased around 50% in the last 5 years, so this is a strong market. Mortgage rates also continue to decline as experts predicted going from almost 8% in October 2023 to around 7% in today’s market. More stabilization appears to be in the cards for the future as well. 

Oklahoma Market Trends  

To understand the Oklahoma real estate market, it’s important to keep up with trends. Let’s look at some key ones in Oklahoma:  

Note: These statistics are based on Redfin’s monthly housing data from May 2024.   

Median Home Prices 

The median sale price of a home in Oklahoma as of May 2024 was $251,000, according to Redfin’s monthly housing market data. A notable percentage of homes sold above the list price, reflecting the competitiveness of the market. This is an increase of 2% from May 2023. In Oklahoma City, the capital, the median price in May 2024 was a predictably higher price of $270,000. In Tulsa, another heavily populated city in OK, median prices have risen 2.8% in the last year to $242,000. 

Number of Homes Sold 

4,695 homes were sold in Oklahoma in May 2024, which is a 0.89% decrease in Oklahoma home sales from the previous year. Whenever we talk about homes sold, it’s important to keep in mind that nationally speaking, sales usually peak during the spring and summer months and slow in the winter. In fact, the National Association of Realtors (NAR) predicts that in February and March alone, sales activity increases by as much as 34% and prices by 3%. So, that should factor in as you look into homes moved throughout the year.  

Median Days on Market (DOM) 

Days on market (DOM) is a measure of the average length of time a home remains listed on the market before being put under contract. A lower DOM signals a highly competitive seller’s market with more pressure on buyers to make higher offers and remove contingencies. A higher DOM signals a buyer’s market as sales are slower and sellers have less leverage, indicating favorable conditions for buyers. 

The median DOM in Oklahoma in April 2024 was 30 days, which is up by 6 days compared to May 2023. On average, listings spend 30 days—almost a month—on the market before they are purchased. This means Oklahoma is a more balanced market than much of the country. 

Supply Statistic  

Oklahoma currently has a 3-month housing supply, which means there has been zero change since last year in this statistic. Experts typically point to 4 to 5 months’ supply as a healthy amount, but 3 is higher than in many other states around the nation. Thus, this data point is another one that points to Oklahoma as a more balanced housing market. 

Property Tax Rate 

The average property tax rate in Oklahoma, according to Rocket Mortgage, is 0.89%, which puts it right in the middle of state property tax rates in the U.S. However, it’s important to keep in mind that tax rates will vary depending on the value of a home and its location in the state.  

Foreclosure Rate in Q1 of 2024  

In the first quarter of 2024, 1 in every 1,982 homes in Oklahoma experienced a foreclosure filing according to recent data from ATTOM. This statistic once again places Oklahoma right near the middle of the pack in North America.  

Some Local Markets in Oklahoma  

Here are a couple of the top local housing markets in Oklahoma for 2024:  

1. Oklahoma City 

As previously mentioned, Oklahoma City, OK is the capital of Oklahoma. It’s also the most populous city in the state with around 700,00 people living there. 

The housing market is fairly competitive in this city. Oklahoma City home prices have a median sale price that reflects the market’s competitiveness, and homes spend an average of 22 days on the market. The number of homes sold dropped almost 4% year-over-year, per Redfin, but the DOM is 22 days. This low DOM means that homes go off the market rather quickly. Part of the reason for this speed, though, could be the increased price drops in the area by sellers (36.3% of homes had price drops in May 2024). 

2. Tulsa 

Tulsa is the second most populated city in Oklahoma behind Oklahoma City. When compared to nearby cities, Tulsa’s housing market shows a lower median sale price and higher competitiveness. The housing market here is quite competitive. With a DOM of 15 days, homes move extremely fast here. That’s well below the national average and below what one would see in many comparable cities around the country. Tulsa, like the capital, saw almost 40% of homes with price drops in May 2024, so that could be a factor here as well. 

Economic Factors Impacting the Oklahoma Housing Market   

A holistic view of Oklahoma’ housing market requires a basic understanding of the main economic drivers affecting the market. Let’s look at a few critical ones below:   

Mortgage Rates 

Mortgage rates are a common cause of concern for would-be homeowners across the U.S. in 2024. According to Bankrate, Oklahoma’s current average for 30-year fixed-rate mortgages is right around 7% in July of 2024 which is a little above the national average. As previously mentioned in this article, this number is down from mortgage rates in OK, and experts expect that this number may continue to decrease throughout the year.  

Inflation and Cost of Living 

Mortgage rates are tied to inflation, another massive contributing factor to the affordability of housing and the state of housing markets in general. Inflation has increased the cost of living for many across the U.S., including in Oklahoma. This means fewer people can truly afford to limit housing costs to less than 30% of their monthly income.   

Population Changes and Demographics 

Over the last 3 years, Oklahoma experienced its largest population increase since 2013. Like many other states, Oklahoma’s affordable large and midsized metro areas saw larger gains than the giant metro areas. OK also experienced migration from many western states, which was a common theme of the pandemic.   

Oklahoma Housing Market Forecast 2024  

As previously mentioned in this article, the Oklahoma housing market was expected to reach a greater balance with increasing demand to match supply. While this has so far proven to be true given the growing number of new listings throughout the year, it’s something to keep an eye on.  

Likelihood of Oklahoma Housing Market Crash  

Experts believe that a housing market crash in Oklahoma is unlikely for 2024 due to its solid economy, varied job market, and reasonable cost of living. The average cost of living is under $40,000 and the average median household income is well above that figure. The housing market doesn’t have any strong indicators that it’s in any kind of peril or will be at any point soon.  

Forecast for the U.S. Housing Market  

Now that we’ve looked at Oklahoma’ housing market, let’s zoom out a little bit. What about the U.S. housing market? What do you need to keep an eye on in the coming years? 

The United States’ current median existing-home sale price is around $384,500 per the National Association of Realtors. The inventory, though, remains low. A balanced market typically has a 5-to-6-month supply, but the current figure is 2.9. 

We’re currently in a seller’s market with buyers looking at continued rising house prices. The same trend can be seen with renters. Housing continues to appreciate, in general. 

Dr. Lawrence Yun, Chief Economist and Senior Vice President of Research, National Association of Realtors, believes the housing market will appreciate 15 to 25% over the next five years. He thinks that the seller’s market will continue because housing inventory will remain low. In five years, however, he predicts a more balanced market, in which neither party has a built-in advantage. Thus, the market will shift to a case-by-case basis to determine what kinds of deals people can get. 

Hybrid work also impacts the housing market. This shift in work culture means suburbia will continue to grow. States like Texas, the Carolinas, Tennessee, and Florida should see continual growth. 

The number of single-family homes built decreased over the past couple years while the number of multi-family homes increased due to lower prices and a demand for affordable housing. Higher mortgage rates and inflation (affecting price of materials) were the main causes. 

Lower income households continue to struggle in the current housing market. This trend appears likely to continue into the foreseeable future. Without enhanced supply or helpful subsidies, the outlook is that many Americans will still wrestle with housing affordability in the years to come. 

Oklahoma Rental Market  

The rental and buying market are obviously closely linked. When home prices fall, landlords are more likely to buy properties to rent out. Home prices and rental prices are correlated as well because a hot market means prices rise.   

Rents were more unaffordable than ever in 2021 and 2022. In 2022, 22.4 million households paying rent said it was unaffordable, which is the highest that figure has ever been, according to a January report from the Joint Center for Housing Studies at Harvard University. The study found that half of all renters in the United States spent over 30% of their income on rent and utilities.   

The markets cooled in 2023, though, due to new units and decelerating demand. But a serious problem persists: Rent increases are still outpacing income gains.   

Moreover, high interest rates are keeping borrowing and transaction activity down. Over half the banks surveyed by the Federal Reserve reported that demand for multifamily loans decreased year-over-year.   

These factors influence Oklahoma’s rental market but in no way dominate it. Oklahoma rent is generally affordable compared to the rest of the country. Below are just a few of the current trends for Oklahoma’ rental market based on data pulled from Zillow:  

Oklahoma Rental Market Key Trends 

• Median rent: $1,400 (35% lower than the national median)  

• Month-over-month rent charge: $25  

• Year-over-year rent charge: +$1  

• Available rentals: 4,804  

Conclusion  

The diversity of the Oklahoma landscape means that its average housing market statistics are pulling from a mix of urban and rural populations where the housing market is experiencing different conditions. But the state is stabilizing and improving in key areas, making it a market for investors and buyers alike to watch. Oklahoma realtors, experts, and analysts will continue to monitor this market, as well as nationwide factors like interest rates and new construction.