Following a slow down after the federal government’s housing stimulus effort expired, the Nebraska real estate market saw little change. There are few worries in this corn-belt state about its housing markets, which remain some of the steadiest in the country.
The fast money lending that developed else where in the nation with Alt-A mortgages and subprime loans were never sold in heavy volumes in Nebraska, protecting its market from fallout of the financial mess. As a result, Nebraska has one of the lowest foreclosure rates in the country.
In Omaha the housing market is in recovery. The foreclosure crisis doesn’t exist in the state’s largest metro area, and its economy remains fairly sound, despite concerns over the greater U.S. economy. Record low mortgage rates are having little impact on home sales in the conservative mid-west, despite a rise in sales because of slightly lower home prices.
With one of the better employment rates in the country, Nebraska has seen few changes through the recessionary times. Some job losses in insurance could have a lingering impact on the local economy, but a strong agriculture business should bolster Omaha. Home prices are forecast to rise a steady 2.5% for the year.
However, broader concerns over the greater national economy have at least some influence on Nebraska housing markets. An increase in homes listed for sale could pose troubles in Bellevue near Omaha as it moves forward. A steady volume of home sales during the spring and summer didn’t slow much as a result of the tax credit expiration.
The result is projected to keep homes selling at a fairly stable pace through the end of the year on forecast modest appreciation of just 2.3% in 2010.
In Lincoln more homes are also listed for sale, and like most of Nebraska homeowners are cutting their asking prices to get properties sold. Most of the price cutting, however, is caused by the conservative state of the market in Lincoln, where buyers are leery about paying too much for a home with overall concerns about the greater U.S. economy.
Few foreclosures trouble the market in Lincoln or any where else in the state, where the impact of the real estate crash has been among the least severe in the nation. Home prices are forecast to rise a conservative 1.9% by the end of 2010 in Lincoln.