Omaha 2023 real estate outlook looking slow
OMAHA, Neb. (WOWT) - Omaha’s housing market is cooling off and that’s largely because mortgage rates are rising.
According to Bankrate’s survey of the largest mortgage lenders in the country, the 30-year fixed rate is between about 6.5% and 7% this week.
Here in Omaha, the President of the Omaha Area Board of Realtors says inventory remains low.
There are existing houses for sale but buyers are not pouncing like they were this past summer or spring when many houses for sale had multiple offers and the owners could sift through them before choosing. Existing homes include single-family homes, townhouses, and condos.
“I think the increase in interest rates, we’re up about three percentage points over where we were a year ago has made buyers step back and pause a little bit,” said the Board’s Crystal Archer. “So those homes aren’t moving off the market as quickly.”
Still, the market appears to be outperforming the national trend for sales and affordability. Nationally, November sales were down 35.4% compared to November 2021. In Omaha, sales were off by 13% for that same one-year period. The average sale price nationally was $370,000. In Omaha, it’s $260,000.
So where is the local market heading as 2023 begins?
“I think we’re going to see a slower start. I think you will see buyers that were in the market these past two years that stepped away because it was just too much to come back slowly. They are going to sit and see what inflation does”, said Archer.
Archer says if you are in the market to buy a home in 2023 but are a bit reluctant because of higher mortgage rates, you can always buy now and refinance in the future.
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