The first-quarter analysis of the Oklahoma City housing market from Metrostudy data shows the market is still struggling with decreasing new and existing home closings, small rise in median new-home price, and a decline in the average household income for new-home buyers.
Although the unemployment rate in Oklohoma City was slightly lower than the national average in May—4.4 in the city compared to 6.1 percent nationally— the reported sale of homes in the market has been on the decline. In 1Q13 there were 890 new-home closings in the market, which fell to 768 compared to 1Q14, nearly a 14 percent drop. Existing home sales fell from 5,684 to 5,417 between the first-quarter of 2013 and 2014, with the second, third, and fourth quarters of 2013 all more than 6,000 existing home sales per quarter. New-home sales also peaked in the past year in the second-quarter with 1,113 closings. The median closing price for existing homes increased from $120,300 in 1Q13 to $121,000 in 1Q14 and for existing homes the median closing price also increasedby about six percent from $211,800 to $224,900. The median price per square foot came in at just $65 in the first-quarter for existing homes and $143 for new-homes. While the cost per square foot is increasing, it is not moving nearly as quickly as nearby big metros like Houston, Dallas, and Nashville.
Despite the rise in price, new homes are still affordable in the market. Because of high affordability compared to many other metros across country, Oklahoma City has a rather young average household age at 46 for existing homes and 40 for new-homes in the first-quarter. The average household age for new homes is getting younger, falling to 40 from 43 in the fourth-quarter of 2013 and 41 in the first.
The average household income for the new-home buyer has also decreased, dropping for from $89,066 in 1Q13 to $80,656 in 1Q14, a 9.4 percent decline. This is not the case for the existing homebuyer, however, in which the average household income rose slightly from $76,575 in 1Q13 to $78,115 in 1Q14. The overall market fluctuation in closings, household income, and the price per square foot speaks to some continued market instability, however as market intelligence from the first-quarter shows, the housing market overall is slowly returning to pre-crash norms. The market is also declining as a slower rate in spring and summer compared to a harsh winter of market decline.
Learn more about markets featured in this article: Oklahoma City, OK.