Investing in real estate is a promising way to diversify your portfolio and generate long-term passive income. Not only is real estate’s consistent appreciation a hedge against inflation, but it also provides you with a tangible asset you can use as leverage for loans, purchases, or even future investments. However, successful real estate investment means knowing the current trends and being in tune with the local market.
Braden Group is a local real estate investment company with the experience, expertise, and insight to help you make the most of Oklahoma’s market trends. We believe the most successful investors are educated investors, so we offer all of the resources and support you need to develop a profitable investment strategy. In just the past 12 months alone, we’ve helped our more than 60 active investors generate more than $3.5 million of total income, and we can help you too.
Current Trends in the Oklahoma Real Estate Market
While Oklahoma’s real estate market will react to what’s happening nationally—most recently with fluctuations in activity resulting from mortgage rates and inventory levels—it’s still one of the best and most consistent housing landscapes in the country. The state’s low cost of living, high earnings potential, and wide range of lucrative industries ranging from energy and oil to aerospace and manufacturing are continually reflected in rising property values and balanced conditions for both buyers and sellers. A real estate surplus means buyers can afford more square footage for less, while landlord-friendly regulations and policies make it easier to manage invested properties and maintain a positive cash flow.
The Oklahoma real estate market also experiences seasonal tendencies. January and December typically see the fewest number of homes for sale, sold, and even listed, while late April through early August boast the most number of homes listed and sold. January and February usually see the longest days-on-market times.
Here’s how some of these market trends break down.
Selling Activity
Metrics like the median selling price, number of homes sold, and median days on market are all indicators of the health, strength, and activity of Oklahoma’s real estate market. Rising median sale prices, for example, typically suggest continued growth and demand as well as whether homes are becoming more or less affordable.
The median selling price of a home in Oklahoma has steadily increased over the last 5 years, from just over $150,000 in 2019 to around $252,400 in 2023, a 2.5% increase over last year and indicating good future growth.
The median days on market indicate the competitiveness of the market. The longer homes sit on the market, the more time and control goes to the buyer. The shorter the time on market, the faster and more competitive buyers need to act.
The median days on market in Oklahoma is 21, up 8 from the same time last year. The highest median days on market in 5 years was in 2019, with an average of 65 days, while January 2021 to June/July of 2022 saw the lowest days-on-market in 5 years, with homes staying on the market for less than two weeks during peak periods.
The number of homes sold, another indicator of market strength and activity, is down 12.8% from last year, at 4,493, but this varies throughout the year, with lows usually in January and February and highs in the summer months.
Housing Demand
Housing demand is an indicator of market competitiveness and is measured in metrics like the number of homes sold above list price, the number of homes sold with price drops, and the sales-to-list price ratio.
In late 2022, 30% of homes in Oklahoma sold above list price, a sharp decline from nearly 50% the year prior, which was also a nearly 5-year-high for selling above list price. This indicates a decrease in competitive “bidding wars” and a “leveling out” of the market following a 5-year-low in homes selling above list price in January of 2023.
After a 5-year-high in September of 2022 at around 30%, 27.2% of homes in Oklahoma are now selling with a price drop, which means the sellers had to work harder to attract buyers. While monthly trends remain relatively comparable, the sustained increase in homes selling after a price drop could indicate that the market is either cooling and shifting toward the buyer or that the sellers are pricing too high.
Oklahoma’s sale-to-list ratio—a measure of how much above or below asking price buyers are paying—has remained steady for the last 5 years at about 98.6%. This indicates a fairly balanced landscape where market conditions are favorable to both buyers and sellers, with a nearly equal number of homes closing above list price as below. There are opportunities for negotiation on the buyer side, but sellers can still get good prices, facilitating swift market activity.
Housing Supply
The key performance indicators for housing supply—whether or not there are enough homes for sale to meet buyer demand—are the number of homes for sale, the number of newly listed homes, and the months of supply ratio.
After 5-year-lows in February of 2021 and again in 2022, the number of homes for sale has slowly begun to recover to pre-2020 levels, with just over 14,100 homes available for sale in June of 2023.
The number of newly listed homes experiences the most variation from month to month, with drastically more homes listed in June and July than in December, but it has also remained the most on par with historical patterns, which indicates that sellers continue to remain active and confident in the market and buyers continue to have plenty of options to choose from.
A months-of-supply ratio of six months—which means it would take 6 months for every home currently on the market to sell, based on the current rate—is considered balanced, with fewer months favoring a seller’s market and more months favoring the buyer. After a 5-year-high in 2019 of nearly 5 months, Oklahoma’s months-of-supply ratio is at 2 as of June 2023, this following historic lows in 2021 and 2022 of just over 1 month, when the market was highly competitive and heavily favored the seller.
Data obtained from https://www.redfin.com/state/Oklahoma/housing-market.
Best Places in Oklahoma for Real Estate Investment
Growing populations, increasing home and property values, and high rental rates all make for good real estate investment conditions. Here are some of the best places in Oklahoma to look for real estate investment opportunities.
Oklahoma City, the state capital and most populous city in Oklahoma with more than 637,000 people. Nearly 40% of Oklahoma City residents rent their homes.
Lawton, the 5th largest city in the state and home to Ft. Sill, one of the top military installations in the country.
Mustang, a major suburb of Oklahoma City that’s seen a 6.74% increase in property values, well over the national average of 4.82%.
Midwest City, another bedroom community of Oklahoma City that’s also home to many of the military families from nearby Tinker Air Force Base. It’s one of the top 10 most competitive cities in Oklahoma for real estate as an area with some of the fastest-growing sales prices.
Cushing, a major hub of oil transportation that’s recovering from earlier industry declines at an exponential pace. Property appreciation is well into the double-digits and the city has grown rapidly with the increase in oil production.
Edmond, one of the fastest-growing cities in Oklahoma and home to two universities.
Moore, a residential suburb of Oklahoma City. It’s the 7th largest city in the state and was voted the second-best place to live in Cleveland County.
Yukon, where property values have doubled since 1990 and increased by nearly 23% just in the last decade. Yukon’s population is booming and one in three residents rent.
Stillwater, which is home to Oklahoma State University and boasts the best property value appreciation in the state at 60% over the last 10 years. Stillwater also has the fastest-growing sales prices for residential properties.
Bethany, an OKC suburb that offers the best of both rural living and urban amenities and also ranks among the top 10 most competitive real estate communities.
Norman, where student populations from the University of Oklahoma complement a steady demographic of young families and professionals.
Other popular places for real estate investment in and around the Oklahoma City area include:
- Newcastle
- Piedmont
- Warr Acres
- Nichols Hills
- El Reno
- Goldsby
- El Reno
- The Village
Finance Your Future with Real Estate Investment Opportunities from Braden Group
With steady increases in property values and median sale prices, as well as consistently favorable economic and market conditions for both buyers and sellers, the future for real estate investing in Oklahoma is bright, and Braden Group can help you tap into the potential. Our realty and consultation services are among the best in the state and produce impressive returns on your investment without high fees or exorbitant costs. From residential real estate to mobile storage, Braden Group delivers limitless opportunities for long-term wealth.
At Braden Group, we help our clients produce reliable income through portfolio diversification and wealth preservation, with investment offerings that, on average, require only a $10,000 investment for 20% equity. Some deals result in the same 20% equity with no investment at all. With access to a steady stream of profitable deals, unlimited consultation from proven industry professionals, and a team of licensed leasing agents and contractors, a partnership with Braden Group is more than an investment in real estate; it’s an investment in your future.
Discover our real estate investment opportunities and our exclusive investment consulting courses, or contact us for more information.