Outside bankers from national firms didn't even try selling Nebraskans on fast money mortgages that blew up the U.S. economy. They knew they'd run into the resistance of conservative mid-west values. As a result, Nebraska is barely suffering from the financial crisis and its housing markets remain among the most stable in the nation.
It's clear that the "Oracle of Omaha" billionaire investor Warren Buffet was on to something big keeping his home in Omaha.
The foreclosure epidemic, which has battered so many communities doesn't exist in Nebraska. Anchored by mostly local community bank lending Omaha homes have dropped very little in value. Sales were slightly driven by the first time home buyers' tax credit to an above average season. A local home builder sold 300 homes to first time buyers before running out of inventory.
The expansion of the federal program should boost the market with more sales. Omaha is anything but economically damaged by the financial crisis. With a robust economy, Nebraska has one of the two best employment ratings in the nation.
| City |
Forecast |
| Omaha |
2.5% |
| Lincoln |
1.9% |
| Bellevue |
2.3% |
Job losses in the insurance industry, which is one of Omaha's major employers, could have an impact on the local economy. But a stronger than average agriculture business and bio-fuel industry lead the community's economy and should protect it from any sweeping downward pressures. Housing values are forecast to get a boost in 2010, a conservative 2.5% in appreciation.
In nearby Bellevue, the market is maintaining its healthy pace of home sales, and is projected to retain a steady volume through at least the early part of the year. Bellevue home prices never got out of hand with staggering appreciation and won't see much of a difference as a result. Bellevue is forecast to see home prices inflate a modest 2.3% by year's end.
In Lincoln the median price of a home hasn't changed in more than two years, demonstrating the market's strength in the recessionary national environment. Outside monetary influences such as media coverage have had effects in housing markets all over most of the country, but not in Lincoln, where home sales have also remained fairly steady.
What ever foreclosures there are to come in Nebraska's housing markets, they'll have little impact on the economy. Lincoln is projected to see home values rise a forecast 1.9% in 2010 as it and the rest of the state rebound from what ever minor financial set backs it may endure.
It looks like Warren Buffet has a recipe for more success in Nebraska.
