Omaha Residential Market Active Listings, Sales and Pending Sales

Record Low Mortgage Loan Rates Mortgage loan interest rates are one of the key drivers in the real estate industry. In today's economy, Freddie Mac is reporting 30-year fixed rates at historic lows over the last few weeks. What does this mean to you? 1.) If you're thinking about selling, now is a great time because buyers will be able to afford more home at a lower monthly payment. 2.) If you want to sell and move up, a low interest rate will help you get more home for the monthly payment you pay.  3.) Now is a great time to refinance your existing mortgage loan. Call me or e-mail me if you'd like more information. I am happy to answer any questions you might have. Contact me now. When it comes to mortgage loan interest rates, timing is everything.   Why Smart Homeowners Are Moving Up at the Start of a Real Estate Recovery Cycle Most signs and economic indicators point to a recovery cycle in the real estate market with price stabilization. Previous perceptions of a flood of foreclosure properties are not materializing, and in fact, foreclosure filings are down. Nationally, 7.5 million homes are at least 90 days late on their mortgage. Banks are moving more aggressively toward "short sale" solutions versus foreclosing and taking an immediate loss on their books.   -The Fed has stopped its tax credit program, which resulted in new home sales up 15% to a two year high.   -The Fed is moving away from buying mortgage backed securities and leaving that to private sector forces.   - Many experts believe it's inevitable that the Fed's next step is to raise interest rates after having "controlled" them at VERY historically low rates.   Smart homeowners see an ideal opportunity to "move up." Short sales in your move up range offer great values. That combined with the low interest rates (for how long?) makes this an ideal time to explore selling and moving up. Everyone's situation is unique, but I'll be happy to offer a no-obligation meeting to see if it's right for you. Call or email me!

2009 Market Review and 2010 Outlook I hope the new year finds you with improved optimism over the same time last year.  I know that I am far more confident and assured that our market is improving.  Several national publications, most notably, Forbes Magazine has recognized Omaha as the #1 recovering economy in the United States.  I continue to be thankful that we live in Omaha.   The information which am providing you today, is a combination of my personal experience over 37 years in Real Estate, my personal analysis, along with information provided by Trendgraphix ( a tool which NP Dodge provides me) and input from Gregg Mitchell of Mitchell & Associates, an appraisal and Real Estate Market analysis company.   I continue to believe that present market conditions provide one the best opportunities to purchase a home, especially if you are moving up in price range.                        Inventories, although having declined by 7.7% from December of 2008 to December of 2009, continue to be historically high.  This affords you a large inventory of homes from which to shop for your next home.                                               Interest rates are hovering around 5% which also is at historic lows.                               While you may not sell your present home for the price you had hoped, the next home you purchase will also be at a lower price.  This is good investment strategy, to buy a larger and more expensive home at a discounted price, if you believe that the market will eventually return to price levels which existed prior to the present market decreases.   Mitchell and Associates analysis of 2009 is as follows:                       -2009 was a year which saw improved sales in price ranges below $400,000 while sales in markets above $400,000 were down from prior years.                   -Sales of homes priced below $250,000 were up as a direct result of the $8,000 1st time homebuyer tax credit.                  - In the $250,000 to $400,000 price range sales were up just slightly from 2008.                   -Conditions in markets above $400,000 continue to be soft, but we are hopeful that the new tax credit for existing homebuyers will have a positive impact on this price range.                    - From $250,000 to $400,000, sales were up.  Many buyers seem to have re-entered this market as they feel that prices have "bottomed out."  This segment of the market is slightly oversupplied with a 6-month inventory.  Price trending continues to be flat to slightly declining.  Inventories in this price range are at a two year low.  Even though sales activity is improving, current and anticipated market conditions now only slightly favor the buyer.  Markets in this price range could achieve balance by the 2nd quarter if economic conditions continue to improve.                     -The $400,000 to $600,000 market is the segment that has suffered the most from high inventories and sluggish sales over the past 18 months, according to Mitchell & Associates analysis.  They report that prices of most homes had fallen rather dramatically over that term.  Again, this means a good buying opportunity for buyers entering this price range.                      - $600,000 -$2,000,000.  This is a market segment that was quite strong until 2007.  Since that time inventories have been high and sales activity is running well below the figures we enjoyed from 2000-2007.  Sales in this price range were down by 13% in 2009 compared with 2008.  The inventory, coupled with lower sales rates, tended to drive prices down at a rate of .5% to 1% per month during 2009 according to Mitchell and Associates.  NP Dodge, reported the most sales in this price range than any other company in the second half of 2009.  At forecasted absorption rates, there appears to be a 12 to 18 month supply of listings in this price range.   2010 Outlook:                        -We see activity continuing to build for 2010 despite the snow and lower temperatures.                         -The first time homebuyer tax credit has been extended to June of 2010 but it appears activity in this price range has slowed in the past several months leading to a conclusion that perhaps demand for the first time buyer may be satisfied.                         -The $6500 tax credit for other buyers could enhance the move up market and empty nester activity in 2010 - most likely in the $250,000 to $400,000 range but not likely to have a great impact in the $400,000 and above range.                           -Builders continue to offer incentives or price discounts.  Speculation building will be slow.                            -Homes that sell will continue to be those that are priced very competitively and are in "show house" condition.                            - Buyers have been and will likely continue to seek concessions in terms of pricing, financing assistance and/or decorating allowances.  That trending will be with us as long as inventories remain high relative to absorption rates.   It is my hope that you find this information to be helpful.  If you or any of your friends, family or acquaintances want to buy or sell a home this year, please call me and give me their name and number and I will take it from there.  I thank you in advance for thinking of me.

 

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