From friends, family, and prospective clients, the most
common question they ask me every day is “how’s the market?” Then that is followed up with them saying “I
heard we have little to no inventory and that it’s a hot seller’s market.” Or, “I waited a couple years until the market
bounced back to sell my home. Do you
think I can sell it for this price?” Or,
“If I wait a couple more years, do you think I can get $20,000 more?”
For those of you who are analytical and want to see hard
numbers, here it is.
Omaha Metro Area (Statistical Comparison)
|
|||||||||
Category
|
2013
|
2012
|
2011
|
2010
|
2009
|
2008
|
2007
|
||
Total Res. Closed
|
12,405
|
11,177
|
9538
|
9295
|
10,655
|
9226
|
10,750
|
||
Active Listings
|
3403
|
3621
|
4324
|
4918
|
4345
|
4678
|
5409
|
||
Average DOM
|
54
|
65
|
72
|
68
|
67
|
72
|
68
|
||
Average Sale Price
|
$ 177,734
|
$ 170,502
|
$ 163,268
|
$ 164,357
|
$ 158,616
|
$ 166,216
|
$ 172,251
|
||
Median Sale Price
|
$ 149,000
|
$ 142,000
|
$ 137,000
|
$ 138,000
|
$ 135,000
|
$ 137,500
|
$ 140,000
|
||
Absorption Rate (Dec.)
|
4.3
|
6.5
|
6.6
|
10.1
|
8.3
|
7.7
|
9.4
|
||
Total New Construction
|
1509
|
1166
|
975
|
1163
|
1223
|
1058
|
1487
|
||
Average Sale Price NC
|
$ 275,552
|
$ 259,326
|
$ 248,038
|
$ 239,760
|
$ 236,958
|
$ 283,957
|
$ 272,901
|
||
Average sale Price Exist
|
$ 164,188
|
$ 160,186
|
$ 153,479
|
$ 153,566
|
$ 148,335
|
$ 150,961
|
$ 155,763
|
||
# Bank Owned
Foreclosures Sold |
1200
|
1442
|
1686
|
1379
|
*986
|
NA
|
NA
|
||
# Sold over $500,000
|
247
|
208
|
182
|
157
|
157
|
188
|
219
|
||
# sold over $1,000,000
|
22
|
17
|
17
|
8
|
14
|
21
|
15
|
||
Percentage sold increase from 2012 to 2013
|
10%
|
||||||||
Inventory decrease from 2012 to 2013
|
6%
|
||||||||
New construction increase from 2012 to 2013
|
23%
|
||||||||
Over the last 7 years, 2013 was a record breaking year in terms of closings. It will be interesting to see how the Omaha Metro Area markets performs for the remainder of the year but currently, 2014 has been slower than the previous year. Last year, the market peaked the first half of the year. Consumer confidence came back, the fear of falling values subsided, and we had amazingly low interest rates. Then as we approached fall, there were variables that affected the market slowing down. These variables included the rates rising 1%, school starting, government shutdown, holidays, and Obamacare rolling out. From fall of last year to now, total sales are down about 8%.
Overall for the last several years in a row, it’s taking
shorter and shorter time to get a contract on the table. But this still does not mean that every seller
gets a contract. Over-pricing your home
will turn off buyers and they will go down the street and purchase a better
priced home. The absorption rate of 4.3 tells
us that at the end of December of 2013, if no other houses came on the market
for sale, the Omaha Metro Area had enough real estate listings to supply buyers
for the next 4.3 months. The lower the
supply, the better it is for sellers.
Last year’s absorption rate is very similar to what the market was
experiencing about 10-11 years ago. So
for the seller’s out there who are waiting and waiting to sell your house until
the market continues to improve, there is no need to wait. The time is now.
New construction sales are up considerably at a whopping 23%
increase from the previous year. For the
sellers listing their homes, they really need to think about the other
competing listings out there as well as new construction. For example, if you’re a seller and you have
a 10 year old home that you want to sell, the buyers in the marketplace will
consider spending an extra 30 to 40 thousand dollars to build. For the purchasers, now they are more willing
to have the confidence to spend a bit more and get the house to their exact
specifications and taste. There are
still lots available in some of the established neighborhoods and we have a few
new brand new developments where you can have cherry pickings on the lots. We have a new construction specialist Heeran’s
Home Team so if you are thinking about building, please call me.
The bank owned foreclosures have decreased from the last
couple of years but these types of listings will always be in the
marketplace. Yes, they do affect the
neighborhoods to some degree, but they only account for 1 to 2 percent of the
market.
In all of 2013, 247 homes priced over $500,000 sold. 22 sold over $1million. There’s not as many buyers for this price
range so these sellers need to have more patience, time, and hire a Realtor
with an aggressive home marketing plan.
So generally:
1.
Yes, the market is better. Considerably from 2010 but
not from the previous year.
2.
No it’s not a HOT seller’s market. Buyer confidence has gotten stronger over the
last several years but buyer’s are smart and want the best home for the money
they are willing to spend. You will sell
your house for fair market value for today.
3.
No, if you wait another couple years, it doesn’t
necessarily mean you will get $20,000 more for your home. As long as the home marketing plan is good
and buyers an buyer’s agents know your home is for sale, you home will sell for
fair market value for the condition and location of your home. Even when times were good for example in
2005, the appreciation rate in Omaha was only 2-3 percent. Trust me, I started my career as a real
estate investor so I paid very close attention to this.
If you or someone you know is looking to buy or sell a home
in the next 3-6 months, please call our office to schedule a private home
buying or selling consultation. We would
love to be your Omaha Metro Area’s real estate source for information. Take care until next time!
Heeran Workman, MBA
(402) 707-7878
http://www.HeeransHomeTeam.com
