Is It The Right Time To Sell?

If you’re asking this question you might not have been reading what many highly ranked business and people are saying about Oklahoma.

Oklahoma City Real Estate Afloat in Sinking U.S. Economy

Published on: Tuesday, July 22, 2008
Written by: Cali Zimmerman

Oklahoma, where the wind comes sweepin' down the plain!
And the wavin' wheat can sure smell sweet
When the wind comes right behind the rain.

Rogers and Hammerstein aside, real estate in Oklahoma City may indeed smell sweet to investors looking for a region with positive economic prospects and a property market that seems to be doing well despite the mortgage crisis. In fact, some of the economic factors that are bringing other regions to their knees—such as high gas prices—may actually offer Oklahoma City an economic boost that could benefit investors in the area.

Oklahoma County's income growth ranks in the top 10 nationally in recent data releases

Oklahoma City is located near the center of the state of Oklahoma and serves as the state’s capital and the seat of Oklahoma County. The city covers 621 square miles, making it one of the largest cities in land area in the United States, according to the official Oklahoma City website. The city has a population of 558,000 people.

Energy forms an important piece of the economy, both of the city and of Oklahoma state, with oil reserves first discovered in the area in 1928. “Oklahoma remains an energy state and the heavy concentration of oil and gas activity in the metro area will provide a boost to area job and income growth as long as energy prices remain high enough to encourage local firms to expand their operations,” according to the 2008 Oklahoma Economic Outlook report by Mark C. Snead of Oklahoma State University’s William S. Spears School of Business. Because of this, the rising oil costs that are bringing other regions to their knees may actually be helping counties in the state of Oklahoma.

“The Oklahoma City region is outperforming the state for much the same reason that the state is outperforming the nation—energy,” according to Snead. “The greatest income gains in the metro area have occurred in Oklahoma County and have propelled the county among the ranks of the top ten nationally in terms of income growth in recent data releases.”

The city boasts a low median housing cost of $134,900, according to Zillow.com, and 87 percent of Oklahoma City homes are occupied, leaving the area with a 13 percent vacancy rate. Of occupied homes, 38 percent are rental units with the remainder being owner-occupied. A property owner in Oklahoma City should expect to pay approximately $1,104 per month for property-related expenses and mortgage payments, while owners without a mortgage will pay approximately $373 on average, according to 2006 U.S. Census data. Median gross rent was $570 per month as of 2005, according to census data.

Oklahoma City’s overall economy may bode well for investors. Although job growth in the area was down in 2007 from previous years, it still exceeded the national average growth rate for the year. The Oklahoma City Metropolitan Statistical Area (MSA) experienced a job growth rate of 1.7 percent for 2007, a drop from a rate of 2.2 percent in 2005. The United States averaged a growth rate of 1.3 percent for 2007. Oklahoma City is expected to add 6,800 jobs in 2008 and 9,400 jobs in 2009, according to Snead.

The historic Bricktown district in Oklahoma City is now a downtown hot spot

And, despite the difficulties befalling housing markets around the world, “[t]he Oklahoma City construction market has hardly noticed the national building slowdown and should remain strong through 2009. While some housing-related hiring weakness is expected in the financial services sectors, the metro area will primarily be impacted by the national housing slowdown in an indirect manner through marginally slower U.S. economic growth,” according to Snead. He also wrote that homeowners can expect home values in the Oklahoma City MSA to increase by 2 to 4 percent through 2009.

Because of economic factors, some regions in the city may be in better shape for investment than others where job gains or losses could affect residents’ incomes and buying power. Although all seven counties within the Oklahoma City MSA experienced job increases between 2003 and 2006, the greatest increase was in Lincoln County, which experienced an increase of 21.7 percent during that time period. Cleveland and Canadian Counties together accounted for approximately 30 percent of new jobs created in the region during the same period, according to Snead. Logan and Grady Counties experienced the lowest increases, with rates of 3.1 percent and 2.1 percent, respectively.

For investors looking for a market that seems to be holding its head up despite surrounding economic turmoil, Oklahoma City real estate may be worth a closer look. The region’s energy-based economy and overall market steadiness may prove worthwhile in the long run.

Forbes Ranks Oklahoma City Nation’s Most Recession Proof

May 1, 2008 -- Forbes Magazine recently ranked Oklahoma City as the most recession proof city in the United States.

The magazine cited Oklahoma City's falling unemployment, one of the country's strongest housing markets, and solid growth in manufacturing, energy, and agriculture.

Forbes says Oklahoma City looks best positioned among the nation's largest metropolitan areas to ride out the current crisis.

Forbes says key growth areas include leisure and hospitality which have seen a 6% increase from 2007, while construction is up 11.5%.

The magazine also says Oklahoma City has recently benefited from booming valuations of Devon Energy and Chesapeake Energy.

Forbes based its rankings on several key measures including data supplied from the U.S. Bureau of Labor Statistics. The ranking was all based on data from the National Association of Realtors.

Norman sixth best place to live, Edmond 52nd

Published: July 15, 2008

Tulsa World

The only two Oklahoma cities on this year’s list that made it were Norman and Edmond.

The survey, published in the magazine’s August issue, ranks cities based on job, income and cost-of-living data; housing affordability; school quality; arts and leisure opportunities; ease of living; health care access; and racial diversity.

The top spot in the 2008 rankings was Plymouth, Minn., a city with a population of 70,100. This is what its profile said:

“Topnotch schools, good jobs, affordable housing, low crime, an active outdoor culture — yep, they’re pretty much all here. Plymouth could have become just another Twin Cities suburb, but more than 50,000 jobs keep residents working there.

“Home prices are within reason: The typical three-bedroom, two-bath house goes for $350,000. The city’s main school district is ranked among the top three in the state, and for culture, Plymouth’s open-air amphitheater, the Hilde Performance Center, hosts numerous summer concerts. Residents are a quick drive from the Mall of America, the nation’s biggest mall.

“And did we mention the outdoors? Plymouth boasts more than half a dozen sizable bodies of water. Of course, this being Minnesota, winter can be brutal: January’s average low temperature is about 13°F. But when the mercury plummets, the locals get busy. In February the city hosts a Fire & Ice Festival that includes mini-golf, bowling and basketball — all right on the ice.”

Norman, meanwhile, was recognized for its ability to keep those who attend the University of Oklahoma.

“People flock to Norman from around the world to study and teach — and then to stay and raise a family.

“The university not only helps draw educated workers here but also serves as a major source of entertainment. When the OU Sooners play football against longtime rival, the University of Texas, Norman schools are almost always closed on Friday (you read that right) and the town packs the stadium.”

Norman’s profile in the magazine said that those who aren’t into football get by because of the campus’ world-class art museum. home to works by Degas, Monet and Renoir. The city’s starter homes for about $135,000 also make it attractive.

The magazine did complete profiles for 18 other Oklahoma cities. Those profiled include Altus, Ardmore, Bartlesville, Bethany, Broken Arrow, Del City, Duncan, Enid, Lawton, Midwest City, Moore, Oklahoma City, Owasso, Ponca City, Sapulpa, Stillwater, Tulsa and Yukon.

Owasso had a larger job growth percentage (27 percent) than all of the top 10 cities except for two.

Broken Arrow, Owasso, Bartlesville, Sapulpa and Stillwater all had higher sales taxes (8.52 percent in Broken Arrow to 9.5 percent in Sapulpa) than any of the top 10 cities. The highest sales tax in the top 10 was 8.25 percent in Round Rock, Texas.

See the rankings and what was said about each city that made the list: www.tulsaworld.com/bestcities.