The energy boom in Oklahoma produced higher incomes, population growth and a stable real estate market. But there are growing signs that Oklahoma housing markets are running out of steam, at least in part because of a slowing demand for oil and the national recessionary economy.
Oklahoma is one of just two states in the south that has experienced an expanding economy in the last year. But as expected manufacturing cut backs occur, the once strong economy could be jeopardized.
As home prices in Oklahoma begin their fall, and sales soften Oklahoma City leaders are doing all they can to be prepared, calling a news conference to assure residents that their economy is stable. The national housing crisis hasn't yet hit the state, and it's unlikely it will strike with the force it has elsewhere.
The news conference held at Oklahoma City Hall was aimed at convincing panicky homeowners and perspective buyers that they don't face higher risks purchasing a home these days than a year ago. Oklahoma City home prices increased in 2008, and are projected to lose a minor 2.9% in average values by Housing Predictor in 2009.
 |
| City |
Forecast |
| Oklahoma City |
− 2.9% |
| Tulsa |
− 3.9% |
| Edmond |
− 2.8% |
| Lawton |
− 2.1% |
However, in Tulsa, where foreclosures have been higher as a result of fall out from the credit crisis the local economy could be impacted more seriously. Although Tulsa home prices appreciated in 2008, the market is showing a slowing trend of sales that is expected to last into the year.
The area's home prices are not, however, projected to fall substantially since Tulsa never experienced a large housing bubble. There are comparatively few investors in the Tulsa real estate market, who helped to artificially appreciate many of the worst troubled markets in the country. Tulsa is forecast to experience average housing deflation of 3.9% in 2009.
Higher priced homes in Lawton are beginning to see the slide in appreciation as employers shed jobs in the area, and more cut backs are expected. Consumer confidence is weakening and it's tougher to get a mortgage in the current recessionary economy. Lawton grew through the national real estate boom with many new houses, but should not see as severe an impact as other states, forecast to deflate just 2.1% in average home values in 2009.
Outside of Oklahoma City in Edmond a growing trend of foreclosures is taking place, yet Oklahoma has one of the lowest foreclosure rates in the country. An increasing inventory of homes on the market are beginning to weigh down the marketplace, and as it takes longer to sell homes prices will eventually be impacted.
The upscale market is already feeling the pinch. Edmond, however, is not projected to suffer major losses in housing values. The average home is forecast to drop just 2.8% in 2009 as Edmond and the rest of Oklahoma undergo fall out from the national recession.
