•1. How many properties do you have for sale in your MLS? We currently have 4947 homes for sale on the MLS, which is a 1.6% increase over January.
•2. How does that figure compare with last year's and the year before? Our board doesn't track the number of total monthly listings. Therefore, the only stats I can track right now are the total new listings which are:
February 2008 - 1843 new properties
(27% increase in new listings over January 2007)
February 2007 - 1449 new properties
•3. What is the sales activity per month on single family homes, condos, multi-family, land and commercial?
As per the Great Plains MLS in the month of February, there were:
8 condo/townhome sales (down from 22 last month)
8 land sales
7 multi-family properties
4 commercial properties sold
•4. What is the absorption rate for all of the above?
Based on Total Monthly Listings, the current absorption rate for the Omaha area is 10.71 months of inventory on hand. This means that, assuming no more properties come on the market, it will take 10.71 months to sell the existing inventory.
•5. How does that compare with last year and the year before?
The Absorption rate for February 2008 and February 2007 was 4.92 months and 3.45 months respectively for Total Monthly Listings.
•6. How do February's sales figures compare with February of last year? How does that compare with November and December of last year?
•7. What is the best selling product in your market? What is the worst selling product? Why?
The best selling market are home priced between $100-140K, in the First Time Home Buyer price range. It's good to see that homes priced between $200-400K are moving this month compared to no sales last month.
•8. How much of your market is foreclosure related? How many foreclosures have occurred in your market in January and February?
According to Realtytrac: Nebraska ranks #51 in state foreclosure rankings. In the month of February there are 463 foreclosed homes, five of which are new this month. Foreclosed homes from November 08 forward have accounted for approximately 1% of all homes.
Let's break it out the foreclosures by county. According to Realtytrac, foreclosures represent:
Douglas County - 1 in 40,962 housing units (almost double from January)
Sarpy County - no foreclosure activity this month
Dodge County - no foreclosure activity this month
Omaha is still one of the most stable markets in the country. Our short sales and foreclosures are nothing compared to the East or West Coast, Nevada or even Michigan. Our foreclosures and short sales are not selling for $.40 on the dollar here, unlike what the national news is reporting. The carrying costs of foreclosures is low so banks can and will wait longer for the right price.
•9. What are your observations on local financing?
Financing is available but it's very difficult to find a loan for a credit score under 620. It's so much better to get your pre-approval in advance rather than fall in love with a home and discover you can't afford it because you need some credit repair. There are good companies out there who repair credit and I can refer you to some good ones.
With a ten month inventory of homes on the market, sellers want to know at the time of the offer if the buyer is pre-approved. For that reason, most sellers are requiring loan pre-approval to be submitted with the offer.
Local financing terms are also changing WITHOUT NOTICE. We are seeing buyers being approved through underwriting and then the credit terms changed and they can no longer close on their home. I'm also finding that the banks are no longer notifying the mortgage companies directly when terms have changed. Many are now just posting notices on their website in lieu of notifying those with pending loans directly.
•10. What are your observations on local appraisals?
Homes are still appraising for less and the appraisers are getting pickier. FHA will no longer allow escrow and are instead requiring the work to be done PRIOR to closing. This month alone on one FHA appraisal several NON FHA required items were required to be fixed prior to loan approval.
•11. What is the best advice you would give a Buyer in your market?
If you are a first time home buyer or looking to buy in the $90-140K range, the time to move is NOW! Houses in that price range are moving FAST. This past month three of my buyers has to begin their search over TWICE because the home they wanted to put an offer on already sold.
•12. What is the best advice you would give a Seller in your market?
The average home price increased a little over January, which is a good sign. Until we get more information the direction of home values, Sellers still need to be very realistic when pricing their home. If it's priced too high, they may get considerably LESS for their home versus pricing it correctly and selling it quicker.
