As the winter season unfolds, the Oklahoma City housing market has been marked by interesting dynamics. In this report, we analyze the real estate statistics collected by MLSOK, Inc. for the month of October 2023. We’ll delve into key indicators, changes in closed sales, median sales price, and inventory to provide a comprehensive understanding of the current state of the market.
Current Oklahoma City Housing Market Trends
Here are the details of the Oklahoma City housing market showing the monthly statistics for October 2023, in comparison to September 2023 and October 2022. These statistics, sourced from MLSOK, Inc., shed light on various facets of the housing market, from total closed transactions to the average days on the market.
Total Closed Transactions:
In October 2023, there were 1869 closed transactions, marking a slight decrease from September 2023 (1969) and a more noticeable decline from October 2022 (2073).
Total Dollar Volume:
The total dollar volume for October 2023 amounted to $538,640,306, a decrease from the previous month’s $564,176,483 and a more substantial drop from October 2022’s $583,842,702.
Average and Median Prices:
The average selling price in October 2023 was $288,197, showing a slight increase from September 2023 ($286,529) and a more noticeable growth compared to October 2022 ($281,641). The median price also experienced a similar trend, reaching $242,000 in October 2023, up from $240,000 in September 2023 and $239,900 in October 2022.
Selling Price to List Price Ratio:
The percentage of selling price to list price remained consistent at 98% across October 2023, September 2023, and October 2022, indicating stability in the market.
Days on Market:
One of the notable changes was observed in the days on market, with October 2023 recording 37 days, compared to 33 in September 2023 and 27 in October 2022. This may suggest a moderate increase in the time properties spend on the market.
Number of Listings:
The total number of active listings in October 2023 stood at 6017, showcasing an increase from both September 2023 (5621) and October 2022 (5355).
Under Contract Properties:
There were 1210 properties under contract (pending) in October 2023, with an average value of $292,574. This indicates a dynamic market with a significant number of properties in the pipeline.
Residential Property Types and Monthly Trends:
Understanding the nuances of the Oklahoma City housing market involves delving into specific residential property types and their monthly trends. The following property types contribute to the vibrant real estate landscape:
- Condos
- Half Duplexes
- Manufactured Homes
- Patio Homes
- Single Family Homes
- Townhouses
Monthly Total Closed Transactions and Dollar Volume:
| Month | Total Closed Transactions | Total Closed Dollar Volume | Residential Listings Processed |
|---|---|---|---|
| January | 1225 | $345,597,992 | 2820 |
| February | 1511 | $415,439,937 | 3115 |
| March | 2047 | $590,664,460 | 3862 |
| April | 1834 | $531,446,944 | 3782 |
| May | 2294 | $687,586,162 | 4256 |
| June | 2400 | $722,569,746 | 4182 |
| July | 2042 | $629,973,480 | 3777 |
| August | 2149 | $641,481,623 | 3810 |
| September | 1969 | $564,176,483 | 2373 |
| October | 1869 | $538,640,306 | 3079 |
Analysis and Insights:
The monthly breakdown provides valuable insights into the ebb and flow of the residential real estate market in Oklahoma City. Notably, the total closed transactions and dollar volume exhibit fluctuations, indicating the dynamic nature of the market throughout the year.
For instance, the summer months of June and July witnessed peaks in both total closed transactions and dollar volume, with June recording 2400 closed transactions and $722,569,746 in dollar volume. These months often coincide with increased real estate activity, possibly influenced by favorable weather conditions and market dynamics.
On the other hand, the fall months, particularly September and October, show a slight decline in both total closed transactions and dollar volume. This trend may align with seasonal factors or specific market conditions during this period.
Oklahoma City Housing Market Forecast 2023-2024
The current state of the Oklahoma City housing market, as forecasted by Zillow, provides valuable insights for potential buyers and sellers. According to the latest data available through October 31, 2023, the average home value in Oklahoma City stands at $195,450, reflecting a 3.8% increase over the past year. Homes in this market typically go pending in approximately 13 days, indicating a dynamic and fast-paced real estate environment.
Key Metrics as of October 31, 2023:
- For Sale Inventory: 1630
- New Listings: 597
- Median Sale to List Ratio (as of September 30, 2023): 1.000
- Median Sale Price (as of September 30, 2023): $208,000
- Median List Price (as of October 31, 2023): $276,200
- Percent of Sales Over List Price (as of September 30, 2023): 30.5%
- Percent of Sales Under List Price (as of September 30, 2023): 47.2%
These metrics collectively paint a picture of a thriving real estate market with a healthy balance between supply and demand.
Oklahoma City MSA Housing Market Forecast (2023 – 2024)
Looking ahead, the Zillow forecast for the Oklahoma City Metropolitan Statistical Area (MSA) indicates a nuanced trajectory. The forecasted data, as of October 31, 2023, suggests a modest growth of 0.1% by November 30, 2023, followed by stabilization with a 0% change in January 2024. However, by October 31, 2024, there is a projected decline of -0.4%.
The term MSA refers to a Metropolitan Statistical Area, which encompasses Oklahoma City and its surrounding counties. In this context, it includes various counties within the state of Oklahoma. The specific counties contributing to the Oklahoma City MSA play a crucial role in determining the overall size and dynamics of its housing market.
Understanding the size of the housing market within the Oklahoma City MSA involves considering factors such as population density, economic indicators, and the overall growth trends in the region. The forecast for 2023 and 2024 underscores the importance of staying informed for those navigating the real estate landscape in this vibrant and evolving market.
Are Home Prices Dropping?
As of the latest available data through October 31, 2023, home prices in the Oklahoma City housing market are not experiencing a decline. In fact, the average home value has seen a positive growth of 3.8% over the past year. This suggests a stable and appreciating real estate market, providing a favorable environment for homeowners.
Is It a Buyer’s or Seller’s Housing Market?
The current dynamics of the Oklahoma City housing market lean towards being a seller’s market. With homes going pending in approximately 13 days and a median sale to list ratio of 1.000 as of September 30, 2023, sellers hold a competitive advantage. Additionally, the percentages of sales over list price (30.5%) outweigh those under list price (47.2%), reinforcing the seller-friendly conditions.
Will the Oklahoma City Housing Market Crash?
The Zillow forecast for the Oklahoma City Metropolitan Statistical Area (MSA) provides insights into the market’s trajectory. While there is a projected modest growth of 0.1% by November 30, 2023, and stability in January 2024, a cautionary note is sounded with a projected decline of -0.4% by October 31, 2024. However, it’s essential to interpret this forecast with consideration for various economic factors, and it does not necessarily imply an imminent crash.
Oklahoma City Real Estate Investment Overview
Should you consider Oklahoma City real estate investment? Many real estate investors have asked themselves if buying an Oklahoma investment property is a sound investment decision. Oklahoma City has seen steady growth in both its population and its economy over the years. With a low cost of living and a diverse range of industries, it’s a great place to invest in real estate.
Here are some reasons why:
Steady Growth in Oklahoma City & Its Property Values
The city’s population has grown by nearly 10% over the past decade, and it’s projected to continue growing. This means that demand for housing is likely to remain strong, which should keep property values on the rise. In fact, the average home value in Oklahoma City has increased by 7.7% over the past year, which is a strong indication of the city’s economic growth and stability.
Good Rental Market
Oklahoma City’s rental market is also very strong, with low vacancy rates and rising rents. This makes it a great place to invest in rental properties, as you’re likely to have a steady stream of tenants. The city also has a diverse range of industries, including aerospace, healthcare, and energy, which means there are plenty of job opportunities for renters.
As of August 2023, the average rent for a 1-bedroom apartment in Oklahoma City, OK is currently $850. This is a 0% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Oklahoma City decreased by -23% to $767. The average rent for a 1-bedroom apartment decreased by -3% to $850, and the average rent for a 2-bedroom apartment increased by 2% to $1,066.
It Is Landlord Friendly
Oklahoma City is known for being landlord-friendly, with relatively low taxes and minimal regulations. Landlords have the freedom to set their own rents and can evict tenants more easily than in some other states. This makes it easier for investors to manage their properties and generate a positive cash flow.
Landlords can evict a tenant in Oklahoma City for failure to pay rent, criminal activity, and material breaches of the lease. If the landlord wants to evict them for a breach of lease, a ten-day written notice is required in which the tenant has to solve the issue.
If they don’t, they can be given 15 days to leave. If a landlord wants to evict a tenant for nonpayment of rent, he or she must first give the tenant a 5-day written notice for payment of rent. If the tenant does not pay rent within 5 days, the landlord may proceed with the eviction of the tenant. The only exception is a criminal activity that poses a health or safety threat to tenants and those around them – you can evict someone immediately for that. This includes illegal drug activity in a unit. Eviction can proceed five days after failing to pay the rent.
Conclusion
In conclusion, Oklahoma City offers a great opportunity for real estate investors. With steady growth in its economy and property values, a strong rental market, and landlord-friendly policies, it’s a great place to invest in real estate. Whether you’re looking for a rental property or a fix-and-flip opportunity, Oklahoma City should definitely be on your radar.
There are pockets where you could tap into a large pool of renters such as around one of the many universities, though other neighborhoods are dominated by families that want more space but cannot afford to buy a home.
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 areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.
NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Oklahoma City.
Consult with one of the investment counselors who can help build you a custom portfolio of Oklahoma City turnkey properties. These are “Cash-Flow Rental Properties” located in some of the best neighborhoods of Oklahoma City.
Not just limited to Oklahoma but you can also invest in some of the best real estate markets in 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 and structuring complete Oklahoma City turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.
References
Market Data, Reports & Forecasts
https://okcmar.org/
https://okcmar.org/mls-dept-info/mls-statistics/
https://www.zillow.com/oklahoma-city-ok/home-values/
https://www.littlebighomes.com/real-estate-oklahoma-city.html
https://www.redfin.com/city/14237/OK/Oklahoma-City/housing-market
https://www.realtor.com/realestateandhomes-search/oklahoma-city_OK/overview
https://www.neighborhoodscout.com/ok/oklahoma-city/real-estate#description
https://okcfox.com/news/local/oklahoma-forward-riding-the-housing-market-roller-coaster-during-the-pandemic
Rental Trends
https://www.rentcafe.com/average-rent-market-trends/us/ok/oklahoma-city/
https://www.rentjungle.com/average-rent-in-oklahoma-city-rent-trends/
Low volatility
https://smartasset.com/mortgage/best-cities-first-time-homebuyers-2017
https://www.bestplaces.net/compare-cities/tulsa_ok/oklahoma_city_ok/people
Cost of living, including rents
https://www.numbeo.com/cost-of-living/compare_cities.jsp?country1=United+States&city1=Tulsa%2C+OK&country2=United+States&city2=Oklahoma+City%2C+OK
Landlord friendly
https://www.avail.co/education/laws/oklahoma-landlord-tenant-law
Core to Shore downtown redevelopment
https://newsok.com/article/5571657/major-players-in-oklahoma-citys-downtown-development-to-speak-dec.-4
https://www.okc.gov/government/maps-3/projects/downtown-convention-center
Slow multifamily housing permits
https://www.greateroklahomacity.com/subresources/economic-indicators/
