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This just in...news and views
First-the bad news:
Recently, we've learned that Nebraska ranks 19th nationally in the fattest states. Is that because we're sitting around waiting for our homes to sell?
Speaking of nationally, it's estimated that as many as 150 banks will be going under because of the housing market. Locally, there are none in danger. Things have tightened with the lenders, however, and it's going to take great credit to get that home loan.
According to the Census Bureau, approx. 16.8 million homes sat unoccupied during the second quarter of this year, including nearly 4 million rentals, primarily due to the many foreclosures nationally.
By the end of this year, as many as one million homes will have gone into foreclosure! This, along with the ridiculous gas prices and credit crunch, is giving us all a heavy dose of anxiety...
In the Omaha area, the foreclosure rate is still through the roof (pardon the pun). I've walked through my share of those homes, where the owners, seemingly out of spite, ripped out light fixtures, faucets, and even a furnace and took it with them. Wake me when it's over.
Now--the good news:
I'm bearish on Omaha's housing future. There's a lot of good news regarding Omaha if you've been paying attention. Here are just two examples:
Kiplinger Magazine named Omaha as the #3 Best Cities to Live in the nation.
With a current metro population of approx. 821,356, a 15% income growth since 2000, a median household income of $51,627, low cost of living and great school systems!
MSN online named Omaha #29 as the 66 cities in America where buying a home makes more sense than renting!
Our city continues to get a lot of positive attention, and there'll be more.
You can also make the case that our homes are undervalued, when compared to most of the country. Take a look for yourself. Our homes are bargains!
In June, the Omaha area saw 733 sales, compared to 1,205 in June of last year. The average sale price dropped from $174,097 to $169,978 from the same period a year ago. We will not, however, see the huge price declines of 15% or more like we've seen in other parts of the country!
Locally, we rank 30th nationally in foreclosures, which are expected to increase by as much as 20% this year.
Home ownership locally is at 68.1%, higher than the national average.
Omaha's apartment vacancy has dropped below 6.5%, among the biggest declines in America!
What does this mean for the Omaha homeowner? Pent-up demand--sooner or later, they'll look to buy a home, jump starting the local market. We should see positive shifts over the next 6 to 12 months. Hang in there!
Pass or play in today's market?
I'll tell you where it leaves the housing industry-in a very strong buyer's market!
Lenders have indeed tightened their purse strings for those of you brave enough to make that buy. I've got it from reliable sources (several lenders), that your FICO credit score of 650 two years ago would have to be more like 740 to get that loan you wanted!
Behind the scenes, hedge fund companies like ESL Investments are buying shares into some of the nations largest homebuilders, like KB Homes, who builds in 18 states. Take that as a good sign!Who should buy, or at least try? It's simple: first time buyers should make the leap and enjoy the American dream. Those looking to move up-you will likely take a hit on your home, but easily make up for it when you buy. |
