Omaha Homes for Sale Market Report for - January 2009
•1. How many properties do you have for sale in Omaha Nebraska MLS? We currently have 4867 properties for sale in Omaha and the surrounding communities of Bellevue, Papillion, LaVista, Ralston, Gretna, Elkhorn and Bennington, including Douglas County and Sarpy County.
•2. How does that figure compare with last year's and the year before? January 2008 there were 2246 new homes for sale and January 2007 there were 2531 new homes for sale.
•3. What is the sales activity per month on single family homes, condos, multi-family, land and commercial? As per the Great Plains MLS in the month of January, there were 22 condo/townhome sales, 4 land sales, 4 multi-family properties and 2 commercial properties sold.
•4. What is the absorption rate for all of the above? The current absorption rate for the Omaha area is 7.25 months of inventory on hand. This means that, assuming no more properties come on the market, it will take 7.25 months to sell the existing inventory.
•5. How does that compare with last year and the year before? The Absorption rate for January 2008 and January 2007 was 5.64 months and 2.9 months respectively.
•6. How do January's sales figures compare with January of last year? How does that compare with November and December of last year?
•7. What is the best selling product in your market? What is the worst selling product? Why? In the month of January, the best selling price range right now are homes priced between $100-130K. The homes taking the longest to sell are homes for sale priced above $200K.
•8. How much of your market is foreclosure related? How many foreclosures have occurred in your market in December and January? According to Realtytrac, Nebraska ranks #50 in state foreclosure rankings. There are 291 bank owned homes in Omaha. Bellevue has 22 bank owned homes. In the state of Nebraska, there are a total of 747 foreclosures with an average sales price of $101,528.
Let's break it out the foreclosures by county. According to Realtytrac, foreclosures represent:
Douglas County - 1 in 21,196 housing units
Sarpy County - 1 in 11,581 housing units
Dodge County - 1 in 16,033 housing units
Omaha is one of the top ten most stable markets in the country. Our short sales and foreclosures are nothing compared to the East or West Coast, Nevada or even Michigan. Our foreclosures and short sales are not selling for $.40 on the dollar here, unlike what the national news is reporting. The carrying costs of foreclosures is low so banks can afford to wait longer for the right price.
•9. What are your observations on local financing? Financing is available but you have to have good credit. It's imperative that you get your financing taken care of in advance of your home search. Many buyers are having to repair their credit in order to buy a home.
Local financing terms are also changing WITHOUT NOTICE. We are seeing buyers being approved through underwriting and then the credit terms changed and they can no longer close on their home. I'm also finding that the banks are no longer notifiying the mortgage companies directly when terms have changed. Many are now just posting notices on their website in lieu of notifying those with pending loans directly.
•10. What are your observations on local appraisals? The average price per home is dropping and appraisals are dropping with it. If you are selling a home, you need to be very realistic on the price you can get for your home. The most drastic change I saw was as home in Saddlebrook (subdivision of newer homes) that just recently appraised for about $25,000 LESS than asking price.
•11. What is the best advice you would give an Omaha home buyer in your market? Get your financing in order before searching for your home and be ready to move quickly when you find the BARGAIN you are looking for. The homes that are priced right are those that are just below market value. This is creating a bidding war on many properties.
•12. What is the best advice you would give an Omaha Seller in your market? The average home price has dropped over the past four months. Sellers need to be realistic when pricing their home for sale. If it's priced too high, they may get considerably LESS for their home versus pricing it correctly and selling it quicker.
Here is a snapshot of the past four year's Average Sales Price of Homes in the Omaha, Nebraska market.
Sellers, make sure you look at the price ranges that ARE selling and absorption rates for your area when deciding your sales price. And most importantly, do not pick your real estate agent based on the sales price you're given. Pick your agent based on their marketing plan.
February 2009 - Omaha Nebraska Market Report
Comments(1)