Nebraska Mortgage Opportunities Abound in Early 2007
The National Association of Realtors said this week that sales of existing homes dropped more than eight percent in the U.S. - the largest annual decline in 17 years.
But is it reflected in Omaha, Neb.?
“This is the dining room that’s not quite finished, a work in progress,” Michelle Grioux, a local homeowner, tells the city’s WOWT News.
Her dining room project has been in progress only two weeks. When Grioux applied for a Nebraska mortgage to purchase her home recently, she was surprised how much buying power she had.
“The amount of space I got for the price. The finished basement, walkout basement, newer roof, newer air conditioning - a lot of pluses to this,” she said.
Real estate agents say homes in the price range of $100,000-200,000 still sell very fast in the area. It’s the more expensive price ranges where sales are a little slower.
“The problem with the oversaturation is mainly with the new homes and the spec market where there’s an oversupply of new homes,” says Jeff Rensch, a real estate agent, adding that Omaha has always been somewhat insulated from the big price swings that affect the coasts.
Rensch says that the number of homes that sold last year was close to number that sold the prior year. It’s simply that there is such great inventory of new homes out there, especially in new growth areas.
In lower price ranges, houses all across town are going fast. Local real estate agents say that buyers with just a little bit more money to spend have the advantage.
“It’s very fortunate for buyers. It’s a good time to buy, with mortgage rates and home prices both advantageous. What we’re finding now is the inventory is shrinking. The window of opportunity is shrinking,” Rensch said.
Michelle Grioux certainly feels like she bought at the right time.
“Usually when you’re buying something that has been refurbished like this, it goes for a little more. But I was lucky,” says Grioux.
Omaha’s drop in both new and existing home sales was around five percent. In southwest Iowa, it was around eight percent, as Iowa mortgage costs stayed low but inventory remained high throughout 2006.
Real estate agents stress 2005 was a record year, so the decline in 2006 wasn’t crushing by any means. That’s good news for any in or around Omaha who might be thinking of applying for a Nebraska mortgage this winter.
