As one of the largest and most booming cities in Oklahoma, Tulsa’s economy has been significantly dependent with the local housing market, along with the oil and gas industry in the area. Real estate plays a role in the market expansion and beyond, by which the city forecasts continue to be positive for the past decade. The Tulsa Housing Market Area or HMA includes seven important counties― Tulsa, Osage, Creek, Rogers, Okmulgee, Pawnee, and Wagoner.
Over the years, the HMA features a more diversified market because of the constant upsurge in other industries like aerospace and health care businesses. In year 2016, the Tulsa housing market, particularly the new home closings, have declined marginally. Up to early 2017, the homes listed for sale in the city have declined, eventually accenting fewer homes up for sale compared to the last five years. The slight decrease in the market inventory is noticeably ranged within the middle-priced investments in the housing spectrum or those tagged as trade-up homes. Accordingly, the percentage drop contributes to the increase in prices. As the law of supply and demand states―when the supply is low, the demand is high, so as the price. For the time being, home affordability remains to be a struggle but still bright and positive. And some people may end up renting instead of buying.
Delving deeper into the current health of HMA, most first-time buyers before are now becoming first-time sellers as they trade up or upsize their investments. Circumstances like growing family, unemployment or hefty home expenses are some of the reasons why homeowners end up selling their homes.
Though it seems that the trend will continue for the next five years, the theme of Tulsa HMA is still optimism. The real estate market is positive to see improvements in the succeeding years despite of disappointing home prices. Tulsa is heading to the right direction, slowly. Well, there are a lot of factors that contribute to the HMA, and one of it is the economy. Yes, there may be escalating appreciation rates and home prices, but Tulsa still takes pride with historically low interest rates, low unemployment rate, and new job creations that help in the constructive expansion of the local housing market. The local economy is certainly a crucial stalwart in the sluggish but sure progress. For instance, the job sector of the counties acts as an unfaltering feature of the local economy as many occupations continue to support the supply and demand in Tulsa. Thus, helping the homeowners get away from underwater.
The lucrative investment, on the other hand, is also another factor to consider even if the HMA is far from recuperating back to its thriving state. Aside from the aforementioned factors, foreclosure, which is downright significant in the real estate market, have declined considerably. The continuous drop in foreclosures creates an impact to home values and suggests that the HMA is moving to a more positive track. The progress may be slow, but it will be visible in the long run.