Unlike some other Oklahoma cities, Tulsa boasts a distinctive housing market. Fueled by a strong job market and a steady increase in commercial development, Tulsa is attracting homebuyers seeking a vibrant community.
This article dives into everything you need to know about the Tulsa housing market, including current home values, important trends, and insightful tips for navigating this unique market. While affordability remains a major draw compared to national averages, Tulsa's housing market exhibits its own set of trends to consider before you buy.
Trends in the Tulsa Housing Market
The Tulsa housing market is experiencing a period of steady growth, attracting both homebuyers seeking affordability and investors eyeing a promising market. Let's delve into the key trends shaping Tulsa's real estate market:
Rising Prices, Balanced Market: The median listing price in April 2024 reached $289K, reflecting a 5.1% increase year-over-year. This growth is evident in the graph, where the median listing price line shows a steady upward trajectory. However, the good news for buyers is that the sale-to-list price ratio sits at a balanced 99.74%. This indicates that homes are selling close to asking price, suggesting a market where neither buyers nor sellers hold a significant advantage.
Affordability Compared to National Averages: While prices are rising, Tulsa remains an attractive option for budget-conscious buyers. The median sold price of $242K sits well below the national average, making homeownership a more attainable dream.
Inventory and Days on Market: The market leans slightly towards a balanced state, with supply and demand roughly even. This is reflected in the median days on market of 34. The graph depicting days on market shows a flat trend compared to last month, indicating a stable pace of sales. However, there's a slight uptick compared to last year, suggesting a potential increase in inventory, which could benefit buyers looking for more options.
What This Means for You:
- Buyers: With a balanced market and rising prices, acting sooner rather than later might be advantageous. However, the affordability factor remains a positive. Be prepared to move quickly on properties that meet your needs.
- Sellers: The market presents a good opportunity to sell your home at a competitive price. However, due to the balanced nature, proper pricing and staging will be crucial to attract buyers.
Tulsa Real Estate Appreciation Trends
The Tulsa real estate market has seen steady growth in recent years, with appreciation rates tracking close to the national average.
Consistent Growth Over Time
Over the past ten years, Tulsa's real estate has seen significant appreciation. Homes in Tulsa have gained an impressive 79.23% in value since the end of 2013, translating to an average annual increase of 6.01% (Neighborhoodscout). This growth trajectory aligns closely with the national average, making Tulsa an attractive option for those seeking stable, long-term investment opportunities in real estate.
Recent Performance
Zooming in on a shorter timeframe, the past year (between the fourth quarter of 2022 and the fourth quarter of 2023) has shown continued positive trends. Tulsa's appreciation rate of 5.98% during this period indicates a healthy market with consistent value growth. This is good news for both homeowners and potential buyers. Homeowners can expect their property values to keep pace with inflation, while buyers can be confident that they are purchasing a home in a market with strong fundamentals.
Zooming in on the Short Term
While the long-term trends are positive, it's important to consider shorter-term fluctuations. The most recent quarter (Q3 2023 to Q4 2023) saw a more modest appreciation rate of 0.23%. Annualized, this translates to 0.94%. This slight dip could be due to seasonal variations or minor market adjustments.
How Does Tulsa Compare?
When compared to the rest of Oklahoma, Tulsa's performance is impressive. Over the past five and ten years, Tulsa's appreciation rates have consistently ranked higher than the state average. This highlights the city's strong economic fundamentals and its growing appeal to residents and investors.
On a national scale, Tulsa's real estate market holds its own. Over the past five and ten years, Tulsa's appreciation rates have generally placed it within the top half of all major metropolitan areas, showcasing its competitiveness in the national market.
While past performance is a valuable indicator, predicting the future is never a sure thing. However, Tulsa's stable and consistent growth, coupled with its diversified economy, suggests a promising future for its real estate market. Factors like continued job growth, affordability compared to other major cities, and a growing young professional population could all contribute to sustained appreciation in the years to come.
Tulsa Housing Market Predictions 2024
The Tulsa housing market has been on a steady rise in recent years, with home values appreciating and homes selling quickly. This trend is expected to continue in the near future, but at a more moderate pace. Let's delve into the data and see what experts predict for the Tulsa housing market.
Current Market Trends
- Rising Home Values: The average Tulsa home value has risen 5.7% over the past year, reaching $203,763. This indicates a strong seller's market, where there is more buyer demand than available homes.
- Fast Selling Homes: Homes in Tulsa are going pending in around 13 days, signifying a competitive market. Buyers need to be prepared to act quickly when they find a home they love.
- List Price vs Selling Price: The median list price sits at $278,163, while the median sale price is $195,667. This indicates that bidding wars are still happening, with some homes selling above list price (23.2% of sales). However, there is a significant portion of homes selling under list price (57.2%) as well.
Forecast for the Rest of 2024 and Beyond
Experts predict continued growth in the Tulsa housing market, but at a slower pace than what we've seen recently. Forecasts from sources like Norada Real Estate Investments suggest a gradual increase throughout 2024, with a projected rise of 0.4% by May 31st, 2024, followed by a slightly larger increase of 0.7% by July 31st, 2024.
This trend is expected to hold steady, with a projected increase of 0.4% by April 30, 2025. This moderation in growth reflects a potential return to a more balanced market, where sellers may need to be more flexible on pricing to attract buyers.
Additional Factors to Consider
- National Economy: A strong national economy can continue to fuel the housing market in Tulsa. However, an economic downturn could lead to a slowdown in home price growth or even a decrease.
- Interest Rates: Rising interest rates can make it more expensive for buyers to finance a home, potentially leading to fewer buyers and a shift towards a more balanced market.
Overall, the Tulsa housing market is expected to remain healthy in the coming months and years. While the breakneck speed of appreciation may slow down, there's still room for growth. Staying informed about market trends and economic factors will be important for both buyers and sellers as they navigate the Tulsa housing market.
This graph illustrates the growth of home values in the region over the past year, along with a forecast suggesting this trend will likely continue for the next year.
Should You Invest In Tulsa Real Estate Market?
If you're considering investing in real estate, Tulsa could be a good option to explore. Here are some of the top reasons why investing in Tulsa real estate could be a wise choice, as well as potential drawbacks to keep in mind.
Top Reasons to Invest in Tulsa Real Estate:
- Strong Market Growth: Over the past year, the Tulsa housing market has shown impressive growth, with the average home value increasing by 5.7% to reach $203,763. The median days to pending is relatively fast, indicating a high demand for homes.
- Affordable Prices: Compared to other major cities, Tulsa offers affordable real estate prices, making it an attractive option for investors seeking high rental yield and positive cash flow.
- Diverse Economy: Tulsa's economy is diverse, with a mix of industries that includes energy, healthcare, and aerospace. This diversity helps to create a stable job market, which can lead to increased demand for housing and potential appreciation in property values.
- Favorable Rental Market: Tulsa's rental market is strong, with a high demand for rental properties and relatively low vacancy rates. This creates an opportunity for investors to generate passive income through rental properties. The massive student market in Tulsa can be a good investment opportunity due to the presence of multiple colleges and universities in the area, including the University of Tulsa, Oral Roberts University, Oklahoma State University, and Spartan School of Aeronautics. With a diverse student population, investing in real estate aimed at students can create a stable portfolio, as returns and overall property values are not tied to the popularity of just one school.
- Tax Benefits: Oklahoma offers several tax incentives for real estate investors, including low property taxes and exemptions for certain types of properties.
Potential Drawbacks to Keep in Mind:
- Weather Conditions: Tulsa is located in “Tornado Alley,” which means it is prone to severe weather conditions, including tornadoes and hail storms. This can lead to damage to properties and increased insurance costs.
- Dependent on Oil Industry: While Tulsa's economy is diverse, it is still heavily dependent on the oil industry, which can be volatile and subject to fluctuations in global oil prices.
- Limited Appreciation Potential: While Tulsa's real estate market is growing, it may not appreciate as quickly as markets in larger cities with stronger job growth and population growth.
- Limited Investment Options: While there are opportunities to invest in residential properties, the options for commercial real estate investment may be more limited in Tulsa.
Overall, investing in Tulsa real estate could be a good option for investors seeking affordable prices, strong rental demand, and a stable job market. However, investors should carefully consider the potential drawbacks and risks associated with investing in the region, including severe weather conditions and dependence on the oil industry.