Tulsa Area Real Estate - 2008 Overview

We are officially done with the 2008 Real Estate year. For many around the country it's a welcomed goodbye. Markets on the coasts, in the industrial rust belt and in the Sunbelt areas of Arizono and Nevada were hit hard by rapidly increasing foreclosure rates, falling property values, increase market sale times and compounding unfavorable economic news. Needless to say that for most 2008 was less than a great year.

Could the same be said for Tulsa in 2008? The answer to that question depends upon who you talk to. Let's examine the facts:

The Tulsa Market as I refer to it consists of the following school districts: Tulsa, Jenks, Bixby, Broken Arrow, Union, Glenpool and Owasso. Certainly there are other, vibrant and growing communities and school districts that comprise the greater Tulsa area. This list simply represents the bulk of the Tulsa metro's real estate market and doesn't intend to slight any community not listed.

In 2007 the Tulsa Market, as defined above, resulted in 9,693 residential properties closing sale. The average listing price was $168,961 and the average final sales price was $164,577. The average property size was 1,930 square feet and the average time on market was 53 days.

In 2008, when everyone talked about the terrible real estate market, the Tulsa Market resulted in 8,602 residential properties closing sale - an 11.3% decline in number of units sold. The average listing price was $170,900 and the average final sales price was $165,922 - in increase from 2007 of about 3/4 of a point. The average property size was 1,935 square feet.

So while the number of properties sold was down by 11%, the value actually went up slightly and the number of days on market stayed the same as well. Of course these numbers can vary greatly depending upon which part of the metro area you live (mid-town vs south tulsa; owasso vs. jenks, etc) and I will discuss this more in depth in a later post.

Further, several sources are indicating that the Tulsa area is well positioned to ride out any further market downturns. Economy.com ranks Tulsa as the 6th strongest housing market in the country, predicting Tulsa's housing market will lose about 1% of it's value before the market begins to recover by the end of the year. Tulsa ranks ahead of Oklahoma City, Little Rock, Wichita, Springfield, Dallas, Fort Smith and all other neighborhing markets in the study.

Forbes Magazine ranked Tulsa as the fifth best city in the country to ride out the recession, based on our low unemployment and stable home values.

Tulsa is ranked by MSN Real Estate as the ninth most livable city in terms of best bargains for real estate.

Stan Lybarger in a recent article in the Tulsa World, had this to say about Tulsa:

• Our cost of doing business is 7.1 percent below the national average
• Tulsa's cost of living is 11.5 percent below the national average
• Tulsa County per capita income is 20.7 percent above the national average
• The Tulsa area added 1,890 jobs in 2008
• Tulsa's current unemployment rate is 4.6 percent - the national rate is 6.5 percent
• In 2009, the number of jobs in the Tulsa area is projected to remain virtually unchanged

Other area economists take a similar view, forecasting flat to slightly positive growth for 2009.

As a realtor, I have opportunity to discuss the market with a variety of professionals in the market. All are seeing an increase in buying activity over the first couple of weeks of 2009 and a marked increase in out-of-state interest in the Tulsa real estate market.

So, while the news continues to paint a negative picture of real estate, keep this important statement in mind: all real estate is local. The Tulsa market remains stable and strong.

Upcoming posts will focus on more specific details for a variety of market segments - Union, Jenks, Owasso, Broken Arrow, Bixby, Glenpool, and Tulsa schools. I will also be posting snapshots of individual neighborhoods that may be helpful to those new or unfamiliar with Tulsa.