Champions Real Estate Team's Blog

Jan. 15, 2019

State of the Omaha Real Estate Economy 2018

As we are finishing out 2018 and continuing to prepare for 2019, I thought it is a good time to talk about the State of the Local Real Estate economy.

Interest rates are continuing to rise. The 30-year interest rate is 4.83% (October 2018) compared to 3.90% (October 2017). This trending increase is something I expect to continue in 2019. This creates some possible affordability issues for first-time homebuyers as well as effecting the move-up buyer’s.

Present listing inventory remains low but is returning to normal inventory levels. Currently, the Omaha Area Board of Realtors has 2124 active single-family residential listings and 1160 active land listings. The number of new pending properties in November of 2018 was 904 versus 991 in 2017 (down 8.7%). This compares to October 2018 new pendings of 1092 versus 1164 in October of 2017 (down 6.2%). In addition, November 2018 closed residential properties was 1818 versus 1992 in November 2017 (down 8.7%). Thus, we are in a seasonal adjustment and the market is in the early stages of a correction. I look at this market in three categories. Homes below $225,000 who are first and second-time buyers, homes priced $225,000-$300,000 which make up the middle market and then the homes over $300,000 would be considered the upper-end executive market.

The market with homes below $225,000 has shifted from a strong seller’s market to a normal market (with maybe a slight advantage to a seller). Homes are selling fairly quickly but are not but receiving multiple offers as they have in the past.

The middle market, between $225,000 and $300,000 has slowed tremendously and is now back to a normal market.

The existing marketing in $300,000+ is a buyer’s market and you should be having honest, professional conversations with your sellers about what their motivation is, how important it is to get their house sold and in what timeframe to determine your pricing and marketing strategy. Unfortunately, a $500,000 home in 2011 is probably not worth anymore today. The more upper-end you go in the market, the more you will see homes selling for the same or less than they did seven years ago.

New construction continues to be strong, but over the last couple of years we have seen prices continue to rise. This is due to a combination of increased labor costs/shortage of labor available and an increase in material and land cost. We are starting to see home buyers look at existing homes as an alternative to new construction because of the increased cost and increasing interest rates. Some of these homes, in certain price ranges, are no longer affordable.

What does this mean to you and your sellers? We have to look at things from a different perspective. It will not only be pricing that is important, it will be setting correct expectations on condition, staging, and having initial photos online (99% of potential buyers start their search online). It’s critical to set expectations about the number of showings, open house traffic and days on market. Please do not set false expectations with your sellers. We all need to be realistic about the days on market and what is now considered a good/reasonable offer compared to what we were seeing in a spring and summer market.

In summary, interest rates have been rising, we are continuing to see the average sales price rise, and the market is becoming more “normal.” It is your job to create interest and activity. Remember, we are the most productive real estate office in North America for a reason!

Below is some additional data:

UNEMPLOYMENT RATE:

U.S. – November 2017 4.1% vs. November 2018 3.7% ↓.4 % Year over year

Omaha – October 2017 2.7% vs. October 2018 2.6% ↓.1 % Year over year

CONSUMER CONFIDENCE: November 2017 is 129.5 vs. November 2018 135.9

CLOSED RESIDENTIAL UNITS: November 2017 1992 vs. November 2018 1818 ↓8.7 % Year over year

YTD AVERAGE CLOSED RESIDENTIAL SALES PRICE:

YTD 2017 $211,300 vs. YTD 2018 $226,500 ↑7.2 % Year over year

Written by Vince Leisey, Broker/Owner Berkshire Hathaway HomeServices Ambassador Real Estate Company

Posted in Market Information
March 15, 2016

Omaha Real Estate Market Update for February 2016

Just like the weather the Omaha Market is HOT! Inventory is 17% lower than this same time last year and buyers are anxious to find the right home. For sellers, homes are selling quick when priced right and take the time to get the house ready for the market. We continue to see multiple offer and competitive buying situations. If you are thinking about selling your home now is the time to act and get your home ready to hit the market. Contact us with any questions.

Posted in Market Information
Feb. 22, 2016

Omaha Real Estate Market Update for January 2016

The Omaha Real Estate market is off and running!  The market is still active and inventory is slightly higher than 3 months indicating a slight lean towards a neutral market based on closed sales.  We did see the number of pending sales increase by 29%.  I have seen an increase in multiple offer situations for both buyers and sellers.  The market is strong and very active and will continue as we head into the spring months.   It's still a good time to buy or sell a home in the Omaha and surrounding areas. 

Posted in Market Information
Jan. 25, 2016

Buying & Selling a Home in Today's Market Seminar

Buying & Selling a Home in Today's Market Seminar

Thinking of buying or selling a home in today's market?  

Join Champions Real Estate Team on Thursday, February 25th at 6:00 PM to learn more about the processes of both buying and selling a home in today's market.  Our goal is to help you become a more informed buyer and seller to give you the tools to make the best decision for you.  We will have a lender and a home inspector available to answer any of your questions. 

The seminar will be held at "148Dodge" NP Dodge Real Estate office:

501 N. 148th Street, Omaha, NE 68154

Home Buying Seminar: 6:00-7:00 PM

Home Selling Seminar: 7:15-8:15 PM

We look forward to seeing you there!  

 

If you have any question please contact:

Mark T. Wehner II at mwehner2@npdodge.com or 402.672.7670

 

Jan. 12, 2016

Omaha Real Estate Market Update for December 2015

Is it a good time to get your home on the Market?  Let the number speak for themselves.  The inventory is down 18% since last year and the number of sold homes is up 2.7%.  Beat the spring rush and get your home on the market now so you are positioned to sell your home.  Find out what your home is worth today, Click Here.

Here is an update on the Omaha Real Estate market for December.  The market is still active and inventory continues to stay below 3 months indicating a slight seller's market based on closed sales.  We did see the inventory decrease from November and the pending sales decrease which is typical for this time of year.  It's still a good time to buy or sell a home in the Omaha and surrounding areas

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Posted in Market Information
Dec. 14, 2015

Omaha Real Estate Market Update for November 2015

Here is an update on the Omaha Real Estate market for the month of November.  The market is still active and is trending towards a neutral market meaning there are 3-6 months of inventory based on closed sales.  We did see the inventory decrease from October and the pending sales decrease which is typical for this time of year.  It's still a good time to buy or sell a home in the Omaha and surrounding areas. 

Posted in Market Information
Nov. 19, 2015

VIDEO: Buyers Step 5 - Closing The Sale

There is nothing more awesome than taking ownership of your new dream home. But before you do that, you better loosen up your writing hand. Did someone say paperwork?

Watch this fun video from Realtor.com and Elizabeth Banks to help you with your next step, Closing The Sale.

Posted in Buyer FAQs
Nov. 17, 2015

Omaha Real Estate Market Update for October 2015

Here is an update on the Omaha Real Estate market for the month of October.  The market is still very active and remains a Seller's Market meaning there are less than 3 months of inventory based on closed sales.  We did see the inventory increase from September and the pending sales decrease which is typical for this time of year.  It's still a good time to buy or sell a home in the Omaha and surrounding areas. 

Posted in Market Information
Nov. 12, 2015

VIDEO: Buyers Step 4 - The Offer

Here you are, ready to make an offer on your first home! And since you're about to part with an insane amount of money, it’s time to get close to your REALTOR®.

Watch this fun video from Realtor.com and Elizabeth Banks to help you with your next step, The Offer.

Posted in Buyer FAQs
Nov. 5, 2015

VIDEO: Buyers Step 3 - The Search

You're really doing it! You know what you can afford and you’ve got your pre-approval letter. But before you buy the home of your dreams, you've gotta find it first. 

Watch this fun video from Realtor.com and Elizabeth Banks to help you with your next step, the search.

Posted in Buyer FAQs