OKLAHOMA - Oklahoma real estate statistics and trends are expected to show strong growth in the next few years. As the economy begins to pick up steam, inventory shortages should ease. Meanwhile, home prices will increase by 6.6% in 2023. Likewise, average monthly rents are expected to increase by 4.4%.
Home Values Have Gone Up 18.3% Over The Past Year
The Oklahoma City metro is a seller's market right now. There is a lack of inventory, and buyers must compete for homes. This leads to higher prices and faster sales. The Oklahoma City metro area includes Canadian, Grady, Logan, McClain, and Oklahoma counties.
Oklahoma home values are increasing because of demand and inflation. The state's assessor's office sets market values for 330,000 parcels of property each year. During 1980, the total real estate value of homes in Oklahoma was $4.8 billion. By 2022, the total value will be expected to reach $48.6 billion, up 18.3% from last year. This increase is due to inflation and the strong demand for real estate in Oklahoma County.
The Oklahoma housing market continues to be hot, despite the recession. A low supply, increased costs for builders, and rising mortgage interest rates have combined to drive up home prices. Prices in Oklahoma City are now 18.3% higher than a year ago, making them a great place for first-time buyers.
Inventory Shortages Will Ease As The Economy Reopens
The supply chain crisis is one of the biggest challenges facing governments, and it's looming large just before Christmas when Americans are eager to spend again. As a result, prices for goods are rising. However, the Biden administration is attempting to address the situation, allowing more goods to be imported and easing the blockages in ports.
Supply chain constraints have stretched delivery times in many areas and created a long tail of inventory. It is estimated that U.S. retailers must restock warehouses by $55 billion. While the impact on various product categories is uneven, it's evident that apparel and footwear are the most affected.
Home Prices Will Accelerate By 6.6% In 2023
In a recent report, the National Association of Realtors named Oklahoma City as one of the nation's eight best cities for housing. Its low unemployment rate and increasing median income helped the metro area land on the list. The city was also named the 8th best place to live in the United States for mortgage stability by AOL Real Estate. According to Forbes, the city is also among the top 10 most affordable cities in the United States.
The United States housing market has a shortage of about a million new homes, which will likely continue to push up prices. Although this shortage could confuse some people who believe that the US housing market will crash in 2023 or 2024, the fact is that the economy is expected to remain strong, and home prices will remain high. Inflation is expected to remain high, but the demand for housing will continue to exceed the supply. Homebuilders are using demand forecasting and sales analytics to determine what kind of homes buyers will purchase in the future.
Average Monthly Rents Will Increase By 4.4% In 2022
Oklahoma is one of the most affordable states, and the average rent in Oklahoma City is $873 per month. That's well below the national average. Oklahoma also boasts some big-city attractions, including the Oklahoma City Thunder, an NBA team that is regularly competitive. And the average home price in Oklahoma City is nearly 30% lower than the national average.
As a result of rising costs, more Americans are now living paycheck-to-paycheck. This pandemic has caused many to relocate to cheaper cities. However, many potential homebuyers are still looking for cheaper alternatives in expensive cities.
The Job Market Is Improving
According to the Bureau of Economic Analysis, Oklahoma's job market is improving, as evidenced by increased job growth in many sectors. In the past three years, the state has experienced positive gains in jobs in the transportation, manufacturing, health services, and retail trade sectors. In addition, employment in the financial, professional, and business services sectors has also improved.
As the summer season approaches, hiring in the state will start to pick up. Despite the high unemployment rate, Oklahoma's job market remains stable. The number of employed people is the highest since before the COVID-19 pandemic. Job seekers in the state can experience various emotions during the process. One of these is the uncertainty and stress of searching for a job. But the positive trend in job openings in the state is encouraging.
