Tulsa is near the bottom in national real estate study

Tulsa’s Real-Estate Market Health

(1=Best; 150=Avg.)

  • 211th – % of homes with negative equity
  • 225th – Average days until sale
  • 176th – Median home-price appreciation
  • 263rd – Job growth rate
  • 149th – Foreclosure rate
  • 222nd – % of delinquent mortgage holders
  • 207th – No. of unsold homes owned by banks
  • 31st – Home price as % of income
  • 210th – Population growth rate

According to a national report, home values in the United States have risen 5.2 percent but home affordability has dipped as mortgage rates have increased.

Overall, Tulsa is ranked as No. 269, but in “affordability and economic environment,” Tulsa is No. 139, in WalletHub’s “2019 Best Real Estate Markets.”

Tulsa ranks 57th among large cities.  That means that Tulsa is 8th worst large real estate market in the nation.

Oklahoma City is No. 29 in the large city category.

Oklahoma City has an overall ranking of No. 129 and No. 24 in affordability and economic environment.

Broken Arrow is ranked No. 198 overall with an affordability and economic environment ranking of No. 19. Norman is the No. 83 small city.”

WalletHub compared 300 cities across 23 key factors, including median home-price appreciation to home sales turnover rate to job growth.

“With unemployment falling and house prices rising, the market as a whole has been in a boom, despite the fact that the new tax code has drastically reduced mortgage interest deductions,” the WalletHub report states “But while home values are rising, up 5.2% from last year, fewer homes are affordable because mortgage rates are rising. However, home prices and rental rates vary widely across the United States based on supply and demand.”

Overall, it’s a good time for home buyers.

“Now is an excellent time to consider buying a home during the back-to-school and fall time frame,” said Professor Ed W. Socha or The University of St. Thomas. “There are more homes on the market after the spring and summer prime time buying season and sellers for both new and used homes are nervous as fall approaches with fewer buyers looking to purchase.

“One key economic indicator is historic low long-term interest rates based on 30 year mortgages for primary homes (rates now below 4%); plus, the pressure on the Fed to go lower in the coming months. Also, another economic indicator to review is left over home inventory from new home builders for fall, especially public traded home builders in many U.S. markets.”

The real estate market is shifting, partially due to the buying habits of Millennials.

“Millennials are a tricky subject,” said Associate Professor Andrew Carswell of The University of Georgia. “This has been under the research radar for quite a while but seems to have gotten some traction in the past 2-3 years.

“I caught this news item a few days ago, which also tends to delay these two things as well… record amounts of household debt. Depending on who you listen to, you might be enticed into thinking that Millennials are just not the same as you and I in terms of spending patterns. They are killing the car market right now because they don’t spend money on cars like generations before them.

“I have also heard they have the same feelings about buying homes (or not buying them as the case would be). I’m not so sure that I buy that argument, but that is just conjecture on my part… I think the student debt thing is a real reason behind their problems.”

Rising home prices also work against young, first-time home buyers, Carswell said.

Study findings

  • Berkeley, California has the “lowest percentage of homes with negative equity” while Bridgeport, Connecticut; Newark, New Jersey; Dayton, Ohio; Waterbury, Connecticut; Flint, Michigan and Detroit, Michigan are tied at the bottom (No. 270).
  • Berkeley tops the category of “lowest average number of days until a house is sold” while Jersey City, New Jersey; Newark, New Jersey; Fort Lauderdale, Florida; Miami, Florida; Miami Beach, Florida and New York City are tied at the bottom (No. 292).
  • Richmond, California tops the list of homes with the highest median price appreciation. Fayetteville, North Carolina, is at the bottom at No. 198.
  • Allen, Texas, is No. 1 in “lowest foreclosure sale” while Bakersfield, California; San Bernardino, California; Newark, New Jersey; Palm Bay, Florida; Lincoln, Nebraska and Baltimore, Maryland, have the highest foreclosure rates (No. 264).
  • New Orleans, Louisiana, has the fewest unsold homes owned by banks and Detroit, Michigan has the most.