Residential Real Estate Trends For 2018
Last year’s real estate trends in Omaha, Nebraska, included a slowing market, an above-average level of appreciation, fewer homes, fast-moving markets, and some higher mortgage rates. We’re nearing the end of 2017 and what can we expect with the New Year?
- Home prices and rents may rise faster than incomes. With this hurting renters the most, 2018 appears to be a great time to buy!
- Residential construction will be increasing.
- The median home value in Omaha is $157,100.
- The median list price for a home in Omaha, Nebraska, is currently $180,000, up from the previous year by 19%. Home prices vary by neighborhood, however.
- Omaha, Nebraska, has seen home values rise consistently for the last three years, but the appreciation rate of 3.4% is still under the national average of 5.7%. Even with a lower appreciation rate, however, Omaha, Nebraska offers an affordable housing market, compared to the national average.
- Listed properties in Omaha, Nebraska, tend to be on the market for around 60 days.
- New homes are expected to be the “primary driver of sales in 2018.”
- Boomerang buyers (those who may have lost their homes in the Great Recession ending in June 2009) are eligible to buy again and will be looking for great properties.
- The Omaha market is considered stable, which will draw in more first-time home buyers, boosting the local economy even further.
The absolute biggest factor working in Omaha’s favor is affordability. Homeowners in the area have gotten used to spending about 6.6% of their income on monthly mortgage payments, as opposed to the 15.1% national average. FortuneBuilders.com notes that:
“It is that same affordability that makes Omaha real estate investing and homeownership more attractive to first-time buyers. In the face of rising rents; loosening mortgage restrictions; the threat that higher interest rates really are around the corner; and better career prospects, first-time buyers are expected to become a major player in the Omaha housing market. It is this market that has experts excited about Omaha real estate. A new analysis by online real estate site Trulia shows Omaha-Council Bluffs among the Top 15 “fastest-moving” markets.”
An additional factor working in the Omaha market’s favor: the distressed market. The overwhelming majority of these distressed properties are pre-foreclosures, with auctions and bank-owned foreclosures rounding out the rest. But each of these scenarios provides great deals for Omaha real estate investing.
One last factor (and this one shouldn’t come as a surprise to anyone who reads our blog regularly) that affects the Omaha market is the revitalization and new building that’s happening around Omaha.
If you’re looking for more information about buying a home in Omaha, please check out our recent blog posts:
- Nine Tips For House Hunting Over The Holidays
- Top 10 Ways To Tank The Closing On Your New Home
- Relocating Tips For Families
- A First Time Home Buyer And A New Job : A Guideline
- Don’t Fret, First-Time Home Buyers : How To Make A Down Payment
If you’re ready to take the leap into homeownership in 2018, give The Fairfield Team a call!