The Oklahoma real estate market reflects national trends, but with some twists unique to the region. The overall softer real estate price inflation experienced in Oklahoma translates to less boom and bust extremes, however, unemployment and foreclosure rates tend to vary by urban areas within the state. The following article from Housing Predictor has more on the Oklahoma real estate market.
Slower real estate inflation during the height of the boom has translated into less economic pain in Oklahoma. Despite an economy on the skids with rising job losses, Oklahoma housing prices are holding up better than most of the country. However, foreclosures are projected to rise and could produce a risky future for Oklahoma’s housing markets and overall economy.
Investors flocked to Oklahoma to buy up rental homes in massive numbers towards the end of the real estate frenzy, and now markets are only beginning to see the onslaught of foreclosures that will result.
In Oklahoma City home values have only slid in single digits so far this year. The federal governments’ first time buyers’ tax credit aided markets by getting buyers into homes. But the tax credit is scheduled to end towards the end of the year, and if not renewed it could spell ruin for Oklahoma housing values. The state was one of the last to boom during the national frenzy and is likely to be one of the last to see a collapse if the federal government fails to implement a wider ranging housing rescue plan.
The energy boom that helped support Oklahoma has been drained by job losses and business cut-backs as oil rigs are idled. Oklahoma hasn’t run out of oil or steam by any means, but it is facing recessionary pressures that haven’t been seen since the Great Depression. In Oklahoma City that means fewer people with jobs to buy houses, and more foreclosures, resulting in a forecast for the state’s largest city of 4.8% in average housing deflation for the year.
Local Oklahoma Housing Markets at a Glance
In Tulsa, where home sales are still fairly active, fallout from the financial crisis has also been more limited than most of the rest of the country. As one of the last hold-outs in the real estate collapse, Tulsa actually had appreciating home values in 2008. But home prices are falling and will decline at an increasing rate. Housing Predictor forecasts average home values will deflate 4.2% in 2009.
Fewer subprime and Option Arm mortgages were made in Tulsa, which at least to some degree will help protect its housing market from a collapse along with lower home prices.
However, in Lawton neighborhoods are beginning to see an increase in inventory of higher priced homes as home values erode. A lack of consumer confidence in higher end markets is hurting along with financing that’s tougher to get in the recessionary economy. Lawton grew during the boom with developments, and should not see as severe an impact as other areas in the country, forecast to deflate 5.7% in average home values in 2009.
Outside of OKC in Edmond a slower housing market has been aided by federal help as Oklahoma sustains through the recession with one of the lowest foreclosure rates in the country. The upscale market is feeling the pinch as Edmond makes it through the downturn with forecast deflation of just 5.2% for the year.
This article has been republished from Housing Predictor. You can also view this article at Housing Predictor, a real estate forecasting site.