Real estate has always been a welcome discussion at the dinner table with friends. Mention dear ole Donald and food might start flying, but real estate is common ground.
Will the seller’s market continue? Will interest rates go? Should I sell my house now or wait for next year?
Your ticket to this conversation is paid for each weekend with the To-Do list and grass clippings, least of all paying the annual property taxes.
The next time you find yourself swapping market predictions like the local weather forecaster, keep this one pager handy and you’ll be as welcome as sunny day in a Nebraska February.
2018 Real Estate Market Conditions: Housing inventory remains the most influential and persistent factor affecting home prices. Current demand is significantly outpacing supply.
Housing inventory is down 8.1% nationally from the previous 12 months.
- The Omaha area has less than one active home on the market for every licensed agent.
- Case Schiller Home Price Index reports home prices climbed for 23 consecutive months.
- Millennials are finally leaving the basement and buying homes in groves
- Easing of the 2010 Frank-Dodd regulations has increased mortgage availability
- New construction labor and material costs have seen significant increases
- New construction land availability is very restricted locally
- Availability for new construction entry level homes has extremely diminished.
- Fear of a rising interest rate is fueling steady demand.
2018 Real Estate Market Forecast: Despite the significant price increase, the 2018 real estate market forecast remains rosy. Expect continued low inventory with normalized home prices- buyers appear to be very accepting of the new reality of increasing home values.
In Omaha, price points at or above a half million have already cooled off. Tax legislation and stock market uncertainty might be contributing factors as well as the increased construction costs.
The long-term forecast would contain an obvious cool down of the current seller’s market. The lack of new construction availability and a steady inflow of first time home buyers will continue to drive steady demand in a restricted supply of homes at the 150-300k price points. Mortgage rate increases are expected to push some buyers out of the market, but is not likely in 2018. There is little to no indication that another bubble is on the horizon, at least locally. Higher than expected home values appear here to stay.