Oklahoma Housing Market Report - 2023 Update
What’s the Oklahoma Housing Market Like?
Home prices in Oklahoma have appreciated 32.0% higher than the national level from last year. Looking back three years at the median price in October 2019 compared to October 2022, prices have increased 35.6% in Oklahoma VS 35.8% nationwide.
As of October 2022, the median price for a home in the state was $234,500, which is up 6.6% above last year’s median price. Comparing prices over the last three years, we can see they have decreased -6.5% from the peak of $250,900 in Jun-2022.
Sales volume has also decreased recently. In October 2022, there were 3,659 homes sold in the state of Oklahoma, a decrease of -15.9% from the previous month.
Comparing year-over-year, we saw a decrease of -17.9% in sales from October 2021, when there were 4,457 home sales.
The number of sales peaked at 5,196 sales in Jun-2021; compared to October 2022’s numbers, we are down -29.6% in the number of homes sold from the height of sales activity of the last three years.
It is clear that the recent steep rise in mortgage rates has curved sales activity and shrunk affordability, and the result has been a drop in home prices in Oklahoma.
How Does The Oklahoma Housing Market Compare to the National Housing Market?
The Oklahoma housing market is similar to other markets because supply and demand drive housing prices. Mortgage rates also impact Oklahoma in a similar way as the rest of the nation.
Oklahoma’s home prices and sales numbers have begun to slow down along with the rest of the country. Differences in the regional economy of some of Oklahoma’s metro areas make those markets more vulnerable and others more resilient to the current economics.
The current median price of homes in Oklahoma is $234,500 compared to the national median sales price of $397,549. Over the past three years, the median price of homes in Oklahoma has increased by 35.6% compared to the national average of 35.7%
Oklahoma Metro Areas With The Hottest Housing Markets
The state of Oklahoma has seen typical and average growth in housing demand in recent years. Consequently, prices had also gone up at an average pace as well. There are some areas within the state that have outperformed others though. We will look at the cities with the highest increase in the median price year over year.
The top markets with the highest appreciation rate:
It is the second largest city in the state, with a population of 413,066, according to the 2020 census. Tulsa is the seat of Tulsa county, situated on the Arkansas River. This city is particularly attractive to high-tech industries and also encourages small businesses. When it comes to outdoor recreation, The nearby Ozark Mountains provide hiking trails and lakes for boating, skiing, and fishing.
Tulsa’s home prices have been doing quite well over the last few years; in fact, Tulsa topped the list of cities in Oklahoma with the largest increase in prices in 2022 with an increase of 23.6% from the prior year. For 2022, October’s median price was $246,000.
In October of 2022, there were 433 homes sold in Tulsa, down 0.0% from the same period in 2021.
The median days on the market in October 2022 was 12, which indicates a seller’s market by today’s standards. Compared to October 2021, the median days on the market is about the same compared to October 2022.
McAlester is the county seat of Pittsburg County and the largest city in Oklahoma. This city is home to the Oklahoma State Penitentiary and employees of the nearby McAlester Army Ammunition Plant. Its population was 18,363, according to the 2010 census. Further, it has a humid subtropical climate with average monthly temperatures from 40.0 °F to 81.7 °F.
The McAlester Real Estate market is currently a somewhat competitive market. In October 2022, there were 34 homes sold with a median price of $151,000. The median home price in McAlester has increased 20.8% from October of 2021, while the number of homes sold was 34, a 17.2% increase compared to the same month the year before.
The median days on the market in October 2022 was 40 and it’s up 33.3% compared to Sept 2021.
city in Washington County had a population of 37,290, according to the 2020 census. It is a diverse city with a rich history in business and the arts. Located in Northeast Oklahoma, it is about 50 miles of short drive by highway north of Tulsa. All in all, Bartlesville is a small city with a big heart — and big-city amenities.
Bartlesville is considered a very competitive market right now. In October 2022, there were 54 homes sold with a median price of $151,000. The median price in Bartlesville was up 20.8% over October of 2021, while the number of homes sold was down -30.8% compared to the same period in 2021.
The median number of days on the market for October 2022 was 13 days which is up 30.0% from October of 2021.
is a part of the Oklahoma City Metropolitan Area in eastern Canadian County. Its population was 22,709 as of the 2010 census. This city serves as both a huge milling operation location and an urban hub for nearby farmers.
Yukon is an excellent place to reside and raise a family on a budget due to its low cost of living and family-friendly environment.
The real estate market in Yukon is considered very competitive. There were 92 homes sold in Oct 2022, with a median price of $247,500.The median price in Yukon had an increase of 15.1% from Oct 2021, while the number of homes sold was down -20.7% compared to the same period last year.
The median number of days on the market for Oct 2022 was 13 days which is up 160.0% to the same month in 2021.
Jenks is in Tulsa County and situated between the Arkansas River. It is one of the fastest-growing cities in Oklahoma, with a population of 26,661. Moreover, it is a prosperous city for education, business, arts, entertainment, and community. This charming small town has unique food, shopping destinations, and a friendly community.
Jenks is currently a very competitive market. In Oct 2022, 34 homes were sold with a median price of $379,500. The median price in Jenks saw an increase of 14.1% over Oct 2021, while the number of sales was down -15.0% compared to the same month in 2021.
The median number of days on the market for Oct 2022 was 23, which is an increase of 14.1% compared to the same month last year.
Higher Mortgage Rates Could Slow Price Growth in Oklahoma
How will interest rates affect the Oklahoma housing market? We are already experiencing the impact of rising interest rates across the nation. Price growth in Oklahoma has been flattening or on a slight decline for several months in 2022. However, Oklahoma is such a high-demand destination that it may very well fare better than many other areas of the country.
As of mid-October 2022, the 30-year fixed rate mortgage is above 7% on average. That represents a 133% increase in mortgage rates in less than nine months. The Feds are on a “no holds barred” approach to curve inflation, and interest rate hikes have become the norm over the last several Fed meetings. Unfortunately, it seems that rate hikes are not done. We anticipate at least another rate increase before the year ends.
Key Market Stats for the Oklahoma Housing Market:
As of the latest compiled housing report for October 2022.
|Current Value||Last Year||Change YOY|
|Median Sales Price||$234,500||$220,000||up by 6.6%|
|Number of sales||3,659||4,457||down by -17.9%|
|Median Days On The Market||20||13||up by -6.5%|
|Number of homes available||13,403||11,063||up by 21.2%|
|Months supply of inventory||2||1||up by 100.0%|
|% of homes sold above list||26.1%||38.5%||down by -32.2%|
|% of home with price drops||32.1%||24.4%||up by 31.6%|
|New Listings||4046||4523||down by -10.5%|
Oklahoma Historic price changes & affordability
The Oklahoma housing market has seen explosive appreciation for years. The last 3 years have been particularly favorable to homeowners as they saw their homes appreciate by 35.6% in 36 months.
The steep rise in home prices and mortgage rates has shrunk affordability to record lows in the state. A 35.6% spike in home prices and a sharp increase in mortgage rates in the last 12 months does not spell good news for the Oklahoma Real Estate market.
We know that the average person’s wages do not increase by 35.6% in three years, so we can see why affordability is a problem. The gap between rising home prices and wages keeps getting wider.
- The housing market is clearly shifting, and Oklahoma housing market predictions for the short term seem to point to a declining market along with many areas of the US.
- The next 18 to 24 months will be an adjustment, especially for home sellers and Real Estate professionals. Adjusting to a normalized market that is not heavily skewed in favor of sellers will take time.
- Real Estate markets are highly local, and even within the same state, there will be areas projected to be hit hard by the market shift, and others will fare better.
- Timing the market for buying or selling is a big gamble. If it makes sense for you to buy, go ahead and buy a home. For sellers, if you have to sell in the next 12-24 months, you may want to consider doing it sooner than later, especially if you are in an area that may be considered overvalued and has a high potential for house prices to drop.