Real estate can be a worthy investment opportunity. With research, a plan and the right price, just about anyone can be a real estate investor. If you are looking at investing in the Tulsa real estate market as a potential investment opportunity, you must read till the end.
Tulsa is often ignored as the heart of flyover country, but that would be a mistake on many counts. Smaller, stable markets have many points in their favor that make them a better choice than the “hot” markets that get more attention.
Tulsa is the second largest city in the state of Oklahoma; only Oklahoma City is larger. The city itself is home to around four hundred thousand people. The Tulsa housing market is much larger than this. The Tulsa metropolitan area is home to around a million people.
Include the more distant suburbs and small towns around it, and the general area is home to 1.3 million. This makes the Tulsa real estate market home to a quarter of the state’s population. Real estate is a good investment in Tulsa for many reasons like interest rates and affordability being two important ones.
Besides affordability, a key component to the success of Tulsa’s market is stability. Is Tulsa going to be one of the hottest real estate markets for investors in 2019? To answer this question, let’s take a look at the latest Tulsa housing market trends and find out the prospects of investing in the Tulsa real estate in 2019.
Tulsa Real Estate Market Forecasts 2020
The median home value in Tulsa is $120,900 on Zillow. Tulsa home values have gone up 1.3% over the past year and Zillow's Tulsa real estate market prediction is that the prices will rise 0.4% by May 2020. The median list price per square foot in Tulsa is $99, which is lower than the Tulsa Metro average of $104.
The median price of homes currently listed in Tulsa is $198,000 while the median price of homes that sold is $137,300. The median rent price in Tulsa is $950, which is lower than the Tulsa Metro median of $1,092.
Here is the Tulsa real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 0.4% till May 2020.
Tulsa Housing Market Forecast 2019 – 2021
The Tulsa housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Tulsa housing market trend prediction is 79%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Tulsa, OK is 79% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Tulsa, Oklahoma Real Estate Forecast.
Tulsa Real Estate Market Trends
Tulsa real estate market trends show a 0% week-over-week rise in average listing price and a 2% rise in median rent per month. Trulia has 2,388 resale and new homes for sale in Tulsa, OK including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The median sales price for homes in Tulsa for Apr 4 to Jul 3 was $157,000 based on 1,144 home sales. Average price per square foot for Tulsa was $93, a decrease of -1% compared to the same period last year. The median rent per month for apartments in Tulsa for Jun 5 to Jul 5 was $965.
As per the real estate company named Redfin, the Tulsa housing market is somewhat competitive. The average sale price of a home in Tulsa was $169K last month, up 7.0% since last year. The average sale price per square foot in Tulsa is $92, up 3.4% since last year. Some homes get multiple offers.
Homes for sale in the Tulsa housing market sell for about 2% below list price and go pending in around 25 days. Hot homes for sale in Tulsa, OK can sell for around list price and go pending in around 6 days.
There are 2,579 homes for sale in Tulsa, OK ranging from $900 to $6.5M on Realtor.com. 192 of which were newly listed within the last week. Additionally, there are 416 Tulsa rental properties, with a range of $350 to $4.5K per month. Data by Realtor.com shows that in June 2019 the housing market in Tulsa, OK was a seller’s market, which means there were roughly more buyers than there were active homes for sale.
In June 2019, the median list price of homes in Tulsa, OK was $204.9K, trending up 17.2% year-over-year. The median listing price per square foot was $97. The median sale price was $165K. Homes in Tulsa, OK sold for 1.35% below asking price on average in June 2019. On average, homes in Tulsa, OK sell after 57 days on the market. The trend for median days on market in Tulsa, OK has gone up since last month, and slightly down since last year.
The median list price in Tulsa, OK is $149,900 on Movoto.com. The median list price in Tulsa went up 43% from June to July. Tulsa's home resale inventories is 3, which increased 200 percent since June 2019. The median list price per square foot in Tulsa is $120. June 2019 was $64. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in July.
Tulsa, OK Single Family And Multi-Family Homes
Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.
Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.
As per the real estate company called Neigborhoodscout.com, the median house price in Tulsa, OK is $132,080, which indicates that home prices in Tulsa are well below the national average for all cities and towns in the United States. Single family detached homes are the single most common housing type in Tulsa, accounting for 64.30% of the city's housing units.
Other types of housing that are prevalent in Tulsa include large apartment complexes or high rise apartments ( 24.26%), duplexes, homes converted to apartments or other small apartment buildings ( 6.37%), and a few row houses and other attached homes ( 3.25%).
Renters dominate Tulsa's housing market, and most live in three of four bedroom dwellings, chiefly found in single family detached homes.
Currently, there are 1,367 single family homes for sale in Tulsa, OK on Zillow. Additionally, there are 349 single family homes for rent in Tulsa, OK. Under potential listings, there are about 53 Foreclosed and 222 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Tulsa, OK Foreclosures And Bank Owned Homes 2019
According to Zillow, in Tulsa 1.9 homes are foreclosed (per 10,000). This is greater than the Tulsa Metro value of 1.8 and also greater than the national value of 1.2. The percent of delinquent mortgages in Tulsa is 1.4%, which is higher than the national value of 1.1%.
With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Tulsa homeowners underwater on their mortgage is 10.0%, which is higher than Tulsa Metro at 9.4%.
|Foreclosures in Tulsa||613|
|Homes for Sale in Tulsa||1,014 (RealtyTrac)|
|Median List Price||$209,900 (10% ⇑ vs May 2018)|
There are currently 613 properties in Tulsa, OK that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 1,014. In June 2019, the number of properties that received a foreclosure filing in Tulsa, OK was 26% lower than the previous month and 22% lower than the same time last year.
Home sales for May 2019 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home in Tulsa was $0. The median sales price of a foreclosure home in Tulsa was $0, or 0% higher than non-distressed home sales.
Tulsa Home Prices And Real Estate Appreciation 2019
Tulsa real estate appreciation rates have been tracking above average for the last ten years. The cumulative appreciation rate over the ten years has been 15.72%, which ranks in the top 50% nationwide.
This equates to an annual average Tulsa real estate appreciation rate of 1.47%. During the latest twelve months, Tulsa's real estate appreciation rate, at 5.08%, has been at or slightly above the national average.
In the latest quarter, Tulsa's real estate appreciation rate has been 1.26%, which annualizes to a rate of 5.15%. The above statistics on real estate appreciation in Tulsa, OK were taken from NeighborhoodScout.com.
You can visit their page for more information. Relative to Oklahoma, their data showsthat Tulsa's latest annual real estate appreciation rate is lower than 60% of the other cities and towns in Oklahoma.
Despite steady real estate appreciation, Tulsa remains an intriguing destination for those that can’t afford most other markets. Realtor.com ranked Tulsa as one of the top 10 housing markets in 2018. 2019 is a great time to buy real estate in Tulsa.
Tulsa was the most affordable city on its list, with the median home price well below the national average. Tulsa real estate appreciation rates have remained historically low in the mid-4 percent range.
At the end of 2018, Tulsa real estate continued to appreciate with the rest of the country. Over course of last three years, Tulsa homes prices have been continuously appreciating by as much as 15% year-over-year.
Best Places To Buy Real Estate In Tulsa, Oklahoma
If you are looking to buy real estate in Tulsa, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. Demand would raise the price of your Tulsa real estate and you should be able flip it for a lump sum profit.
When looking to invest in Tulsa real estate, you need to find places where the expected property appreciation forecast is positive. The running costs for owning and managing an Tulsa investment property should be low. The neighborhoods in Tulsa
must be safe to live in and should have a low crime rate.
The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties.
There are 121 neighborhoods in Tulsa. There are 183 schools in Tulsa, OK. There are 85 elementary schools, 30 middle schools, 20 high schools and 48 private & charter schools.
Some of the best neighborhoods in Tulsa, Oklahoma are South Peoria, Brookside and Maple Ridge Historic District. Maple Ridge Historic District has a median listing price of $599K, making it the most expensive neighborhood. Cooper is the most affordable neighborhood in Tulsa, Ok with a median listing price of $78.5K.
As per Trulia's data, the most popular neighborhoods to invest in real estate in Tulsa are Maple Ridge, Lynn Lane, Turner Park, Minshall Park and Folton.
Here are the 10 best neighborhoods in Tulsa to invest in real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).
S Utica Ave / E 15th St
N Utica Ave / E Pine St
U of Tulsa / E 4th Pl
E 11Th St / S Quaker Ave
E Skelly Dr / S Harvard Ave
S Harvard Ave / E 36th St
E 36th St / S Lewis Ave
S Harvard Ave / E 15th St
S Harvard Ave / E 31st St
Should You Invest In Tulsa Real Estate In 2019?
Is it worth buying a house in Tulsa, OK? Investing in real estate is touted as a great way to become wealthy. Many real estate investors have asked themselves if buying a property in Tulsa is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Tulsa housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Tulsa but we have collected ten evidence based positive things for those who are keen to invest in the Tulsa real estate in 2019.
Investing in Tulsa real estate will fetch you good returns in the long term as the home prices in Tulsa have been trending up year-over-year. Let’s take a look at the number of positive things going on in the Tulsa real estate market which can help investors who are keen to buy an investment property in this city.
The median home price is roughly 150,000 dollars. You can buy several Tulsa real estate investment properties for the price of the average home in Austin or Miami.
This is even well below the national median home price of around 230,000 dollars. On top of this, there are neighborhoods where you can find single family homes for well under a hundred thousand dollars.
2. The Opportunity to Find Bargains
The Tulsa real estate market is somewhat healthy, but there are a number of opportunities. For example, ten percent of homes have negative equity, two percentage points higher than the national average.
The mortgage delinquency rate is 1.4 percent, a third higher than the national average. This creates a sizable population of distressed sellers who will sell a home for below market rates.
3. The Return on Investment
The median rent in the Tulsa real estate market is around 800 dollars a month. The rent on single family homes in the Tulsa housing market is higher than this.
The average home rents for 1000 to 1200 dollars a month based on where it is located. Rents are higher in the suburbs than in downtown Tulsa. On top of this, rental rates are rising at more than two percent a year.
4. The Sizable Tulsa Rental Market
The average salary is around 45,000 dollars. This makes the average 150K home too expensive for many residents. About a third of the population rents according to Census data, a relatively high number given the low median price of homes in the area.
However, the rental market is made more expensive by the large population of students that are not nearly as price sensitive as families with children.
The growth of the universities in the area and the fact that Millennials that choose to stay after graduation tend to rent explain why the renter fraction has been slowly increasing over the past ten years.
5. The Massive Student Market
The other major population of renters in Tulsa is the many college students in the area. The University of Tulsa has more than four thousand students. Many come here from across the Midwest to attend its law school.
Others come to attend Oral Roberts University. ORU is actually larger than the state university. It is home to more than five thousand students. Oklahoma State University has a research campus in Tulsa, as well.
The Tulsa real estate market also hosts around 1500 students at the Spartan School of Aeronautics. All of this creates the opportunity to hold a diverse Tulsa real estate investment portfolio while catering to the student market.
This actually makes real estate aimed at students more stable, because the returns and overall property values aren’t tied to the popularity of the only school in town.
6. The Stable Local Economy
Tulsa’s unemployment rate is around three percent, somewhat below the national average. While the oil and gas industry is the largest single sector in the city, the Tulsa economy has diversified in recent years.
Aerospace, education, healthcare and manufacturing have all grown significantly. For example, the American Airline maintenance center is located here, as is a large flight school.
These growing sectors explain why unemployment in Tulsa has been falling steadily since 2010.
7. The Slow & Steady Appreciation
Those considering Tulsa real estate investment may be reluctant to buy property that could go down in value. After all, rural real estate markets can collapse when a local major employer shuts down.
Tulsa has a large, diverse economy that is quite stable. It is also attracting people from the rural areas who come to the city to work and enjoy amenities like top notch hospital and universities.
This is why Tulsa is adding thousands of people every year. Because the Tulsa real estate market isn’t hot enough to see a building boom, the end result is home prices rising a steady one percent or more per year. Tulsa home values increased 1.3 percent in 2018 and should rise one percent in 2019.
8. The Somewhat Friendly Environment for Property Owners
Oklahoma isn’t as landlord friendly as Texas, but it is more favorable to landlords than Kansas and Missouri. It offers better protection for landlords than most other Midwest states.
The state doesn’t have laws as to the notice someone requires for rent increases or grace periods. The relative lack of regulation means that most rules are spelled out in the lease. Another point in favor of the Tulsa housing market is that it is very easy to evict someone who isn’t paying their rent.
9. The Favorable Environment for Short-Term Rentals
There are several opportunities to profit from short term rentals with a Tulsa real estate investment property. One is offering short term rentals to people relocating to the area or in the area for events like college graduations.
Unlike many cities that have banned Airbnb or restricted it to existing tourist districts, Tulsa decided to allow short-term rentals as long as you pay a lodging tax.
The city is still debating restricting which properties in the Tulsa real estate market can be rented out, but properties with existing properties would be grandfathered in.
10. The Property Tax Rate
Property taxes in Oklahoma are among the lowest in the country, though the tax rate can vary wildly across the state. The average property owner in the Tulsa housing market pays around 1.1 percent per year in property taxes, roughly in line with the national average.
However, the much lower property valuations equal a far lower than average property tax bill. The state is a tax haven compared to Texas, too. You’d pay almost two percent in property taxes per year for an equivalent property in Texas.
Tulsa Real Estate Investment
Maybe you have done a bit of real estate investing in Tulsa, Oklahoma but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold.
A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.
Therefore, finding a good Tulsa real estate investment opportunity would be a key to your success. in If you invest wisely in Tulsa real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
The less expensive the Tulsa investment property is, the lower your ongoing expenses will be. Roughly a $150,000 property is what some experts recommend starting with.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments in Tulsa, you should focus on neighborhoods with relatively high population density and employment growth.
Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Tulsa, OK. The Tulsa housing market offers affordable properties, decent rental rates, strong property rights, low taxes and a number of other benefits. You can’t afford to ignore this real estate market when searching for investment opportunities.
It is attractive to many who come here to learn and work, but it isn’t growing so fast that it suffers problems from that growth. These are a few reasons why you should seriously consider the Madison area for investment.
Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Tulsa, OK is your ability to find great real estate investments in that area.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The aim of this article was to educate investors who are keen to invest in Tulsa real estate in 2019. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.
Other Best Places To Invest in Real Estate in 2019
The other best place to invest in real estate is Madison, WI. The Madison, Wisconsin area sits in a sweet spot. It is larger than a small town and has the amenities of a big city, but it lacks the problems of some of the larger cities in the region.
It is attractive to many who come here to learn and work, but it isn’t growing so fast that it suffers problems from that growth. These are a few reasons why you should seriously consider the Madison area for investment.
The demand for Madison real estate investment properties by renters is higher than you’d expect for several reasons. One is that the Madison housing market costs more than the state average due to demand.
The second is that the large population of student renters in the Madison real estate market drives up rents, forcing many renters to save up longer before they can buy a home.
There are also Millennials who work here after graduation but are reluctant to commit to buying a house, so they continue to rent. This is why less than 60 percent of Madison residents are home owners.
Another sizzling market to invest in real estate is Asheville, NC. The Asheville, North Carolina area is a stable, steadily growing housing market with several profitable rental markets investors would appreciate. It counterbalances this with a healthy job market and demographic momentum that will keep it going strong for years to come.
The lush forests around Asheville attract tourists for the hiking, rafting and other outdoor activities. The city has limited short-term rentals, but that doesn’t mean this isn’t an option if you own Asheville real estate investment properties.
For example, parts of the Asheville housing market are zoned as “resort”. You can rent these properties out on short term rental sites to your heart’s delight.
Properties that already had short term vacation rental permits are grandfathered into the existing rules, though you should verify the permit could transfer to you before buying it the Asheville real estate investment property. Towns outside of Asheville proper have their own rules, too, and are more relaxed in this regard.
Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here.
One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.
*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
Landlord friendly https://www.rentcafe.com/blog/renting/states-best-worst-laws-renters
Property tax rates
The Stable Local Economy
Short term rentals https://kfor.com/2018/02/14/airbnb-voluntarily-adds-taxes-in-oklahoma
Housing Market Data, Trends & Statistics