Tulsa Housing Market Trends and Forecast for 2024

by thebestworldevents.com 16 March 2024 · Property Investment

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Tulsa, OK is a vibrant city with a thriving housing market. Let’s dive into the latest data and insights to get a comprehensive view of what’s happening in the Tulsa housing market.

Current Tulsa Housing Market Trends

Tulsa, Oklahoma, known for its rich history, vibrant culture, and thriving economy, also boasts a dynamic housing market. As of February 2024, the Tulsa housing market continues to show resilience and stability, with certain trends shaping the buying and selling landscape.

According to Realtor.com, Tulsa, OK, presents itself as a seller’s market as of February 2024, signifying a scenario where demand from buyers outweighs the available housing inventory. This imbalance prompts a competitive environment, potentially leading to quicker sales and higher offers.

Median Listing and Sold Prices

In February 2024, the median listing home price in Tulsa, OK stood at $270,000, marking no significant change compared to the previous year. This stability indicates a balanced market, offering opportunities for both buyers and sellers.

Similarly, the median home sold price remained steady at $220,000, reflecting consistency in the market’s pricing trends. Despite external economic factors, Tulsa’s housing market maintains its attractiveness to potential buyers.

Sale-to-List Price Ratio

The sale-to-list price ratio in Tulsa, OK, is currently at 98.85%, indicating that homes are typically sold for approximately 1.15% below their asking price. This slight variance suggests a competitive yet reasonable pricing environment, fostering favorable conditions for negotiation.

Median Days on Market

One of the key metrics influencing the housing market’s vitality is the median days on market. In Tulsa, OK, homes typically sell after 47 days on the market. This timeframe reflects a moderate pace, providing both buyers and sellers with reasonable expectations.

Over the past year, there has been a subtle fluctuation in the median days on market, with a slight decrease from the previous month. Despite this, the overall trend remains stable, indicating a resilient market.

Tulsa Housing Market Forecast for 2024 and 2025

According to Zillow, in Tulsa, the average home value stands at $194,784, reflecting a 5.1% increase over the past year. Homes in this market typically go pending in approximately 23 days. As of February 29, 2024, the inventory comprises 1,203 properties for sale, with 335 new listings.

The median sale price, recorded in January 2024, was $190,000, while the median list price as of February 29, 2024, was $270,582. Moreover, the median sale to list ratio, calculated in January 2024, was 0.981. Analyzing sales trends, 20.3% of sales surpassed the list price, while 60.5% occurred below the list price during January 2024.

Interpreting the Tulsa MSA Housing Market Forecast

According to Zillow’s projections, the Tulsa Metropolitan Statistical Area (MSA) is anticipated to experience gradual growth in its housing market. The MSA, encompassing various counties in Oklahoma, including Tulsa, functions as an economic and demographic region defined by the U.S. Census Bureau. Based on data through February 29, 2024, the forecast suggests a 0.4% increase by March 31, 2024, followed by a 0.9% rise by May 31, 2024, and further escalation to 1.5% by February 28, 2025.

The Tulsa MSA, situated in Oklahoma, serves as an essential economic and social hub within the region. It encompasses several counties, including Tulsa County, Creek County, and Osage County, among others. With a diverse population and a mix of urban and suburban landscapes, the Tulsa MSA boasts a significant housing market, attracting buyers and investors alike. Its housing market size and potential for growth make it an area of interest for real estate professionals and home seekers alike.

Are Home Prices Dropping in Tulsa?

As of the latest data available, there is no indication of home prices dropping in the Tulsa housing market. On the contrary, the average home value has shown a 5.1% increase over the past year, suggesting a trend of appreciation rather than depreciation. Factors such as limited inventory and high demand contribute to the stability and growth of home prices in the region.

Currently, the Tulsa housing market leans towards being a seller’s market. With a limited inventory of homes available for sale and a high demand from buyers, sellers often have the advantage of setting higher prices and receiving multiple offers on their properties. This competitive landscape gives sellers more negotiating power, making it challenging for buyers to secure desirable properties at lower prices.

Will the Tulsa Housing Market Crash?

While no one can predict future market movements with absolute certainty, there are currently no significant indicators pointing towards an imminent housing market crash in Tulsa. The market’s steady growth, coupled with factors such as low inventory and high demand, mitigates the risk of a sudden downturn. However, it’s essential to monitor economic and housing trends closely to identify any potential risks or changes in market conditions.

Is Now a Good Time to Buy a House in Tulsa?

For prospective buyers, the decision to purchase a house in the Tulsa market depends on various factors, including personal financial situation, long-term goals, and housing preferences. While the current market favors sellers, low mortgage rates as compared to last year and the potential for future appreciation may still make it a favorable time to buy for those who are financially prepared and able to compete in a competitive market.

Tulsa Housing Market Forecast for 2024 and 2025 — Source: Zillow

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 5.1% to reach $194,784. 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.

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.

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