Through all the challenges of 2020, the real estate market has done very well, and purchasers are continuing to take advantage of historically low mortgage rates in Omaha and Council Bluffs. Realtor Magazine just explained:
“While winter may be typically a slow season in real estate, economists predict it isn’t likely to happen this year…Low inventories combined with high demand due to record-low mortgage rates is sending buyers to the market in a flurry.”
However, a big challenge for the housing industry in Omaha and Council Bluffs heading into this winter is the dwindling number of homes available for sale. Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), recently said:
“There is no shortage of hopeful, potential buyers, but inventory is historically low.”
In addition, Danielle Hale, Chief Economist for realtor.com, notes:
“Fewer new sellers coming to market while a greater than usual number of buyers continue to search for a home causes inventory to continue to evaporate.”
One major indicator the industry uses to measure housing supply is the months’ supply of inventory. According to NAR:
“Months’ supply refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales pace.”
Historically, six months of supply is considered a normal real estate market. Going into the pandemic, inventory was already well below this mark. As the year progressed, the supply has was reduced even further. Here is a graph showing this measurement over the last year:
What does this mean if you’re a buyer?
Be patient during your home search in Omaha or Council Bluffs. It may take time to find a home you love. Once you do, be ready to move forward quickly. Get pre-approved for a mortgage, be prepared to make a competitive offer from the start, and understand how the shortage in inventory has led to more bidding wars. Have a plan on just how much you will spend to purchase a home that you absolutely love. You will need to make decisions fast since there will most likely be multiple potential buyers in play.
What does this mean if you’re a seller?
Realize that, in some ways, you’re in the driver’s seat. When there’s a shortage of an item at the same time there’s a strong demand for it, the seller is in a good position to negotiate and sell your house fast in Omaha or Council Bluffs. Whether it’s the price, moving date, possible repairs, or anything else, you’ll be able to ask for more from a potential home buyer in this time that currently favors the seller – especially if you have multiple interested buyers. Do not be unreasonable, but understand you probably have the upper hand.
The housing market will remain strong throughout the winter and heading into the spring. Know what that means for you, whether you’re buying or selling your house in Omaha or Council Bluffs, or doing both.
Feel free to reach out to Chris and her team at Homes By Chris Harter with any questions you have if you are considering selling or buying a house in Omaha, Council Bluffs and the surrounding area. We look forward to helping you! Contact us at 402-378-9462 or firstname.lastname@example.org