(The Center Square) - Oklahoma homeowners are not likely to see their properties devalue anytime soon, even as prices drop in the rest of the country. The Sooner State boasts the most stable housing market in the nation post-pandemic, according to research released by market experts at Construction Coverage.
The Construction Coverage research study uses the most recent data from Zillow to determine market volatility in metro areas and across state lines. Oklahoma home buyers who purchased a home any time after 2000 have a 0 percent chance of seeing their property value decrease at least 5 percent from its purchasing price. Only two other states have that kind of housing market stability: Iowa and Alaska.
Nationally, the average percentage to see a change in pricing based on these metrics was roughly 24.82 percent. "In contrast, the probability of experiencing at least a 5 percent price drop between 2000 and present was 50.2 percent in Nevada and 49.8 percent in Georgia," the study states.
Oklahoma was ranked above Iowa and Alaska on Construction Coverage's list due to having the lowest recorded "largest pricing drop" on homes on the market since 2000. In Oklahoma, the most significant drop, or the largest amount seen in a dip in home market value when the house was sold, was only $4,489. By comparison, in Iowa and Alaska, the highest decreases in home pricing from 2020 were $6,475 and $8,883, respectively.
The study indicates that the "largest price drop" nationwide was more than 10 times that seen in Oklahoma, estimated at around $56,187. The states with the largest price drops were in the Western part of the Nation. Nevada had the highest "largest" price drop seen nationwide recorded at $219,788, and California came a close second at $219,330.
In addition to the state having the most robust housing markets in terms of stability, two of Oklahoma cities were also ranked in the top 10 most stable housing markets for metro areas nationally. Oklahoma City, where the median home price is listed at $222,360, was ranked 3rd in the nation based on its low volatility market. Like the state, Oklahoma City also has a 0 percent chance of seeing and had a low "highest price drop" of $5,304. Prices in Oklahoma City have increased by 143 percent since 2000, the study indicates. Tulsa, Oklahoma, also ranked high among the metro cities ranked. Coming in at No. 6 on Construction Coverage's list, Tulsa homeowners had a 15 percent chance of the price dropping 5 percent since their home was purchased. In Tulsa, the median price of homes hit $217,564, as prices have risen 115 percent since 2000.
According to Construction Coverage, home prices across the U.S. have been rising steadily since 2012. The study states that home prices in 2012 were at their historic lowest following the Great Recession and the housing crisis of 2008.
However, housing prices have started to come down across the country since 2022 due to mortgage rate changes made by the Federal Reserve to help combat inflation in the housing markets.
"The red-hot pandemic housing market has finally cooled in recent months. Due to actions by the Federal Reserve to combat inflation, mortgage rates have more than doubled from the historic lows seen in 2021. As a result, home sales have slowed dramatically, and prices have started to come down," the study states.