Year-End Real Estate Report and Fearless Forecast for 2023
Omaha, Nebraska is the largest city in the state and is home to several Fortune 500 companies. The city has a low cost of living and an unemployment rate much lower than other cities in the region. Combined with its low cost of living and safety, it makes it an attractive place for young professionals and families seeking city life at an affordable price.
As 2023 starts, Omaha’s real estate market is turning the tide after last year’s performance. The real estate market is expected to be stronger in 2023 than in 2022. Home sales have been on an upward trend since the mid-2020s, and foreclosures and short sales are at a low point.
The mortgage rate has risen to more than double what it was last year. Buyers are delaying home purchases in hopes that rates will drop. Many sellers are holding off on listing their homes due to weakening buyer demand and are unwilling to trade in their current lower rates for higher borrowing costs on their next property. As a result, existing-home sales have slowed as we move into winter.
From September through November last year, 24% of homebuyers in Omaha sought to move out of the metropolitan area, while 76% chose to stay within it.
Here are some forecasts to look out for this year:
Top four real estate trends of 2023
Short sales are easier
Home buying conditions are improving in 2022, as lenders have become more willing to lend to qualified buyers hurt by the Covid pandemic and subsequent credit crunch. This will make it easier for homeowners to initiate and negotiate short sales, reducing the number of foreclosures this year.
This will be great news for investors looking to buy homes in residential and non-residential markets. It will also help the economy by boosting home prices across all market segments, especially those hit hardest by recessionary trends— Louisiana, Maryland, Washington D.C., Alaska, and Connecticut —such as single-family homes, over the past decade.
Potential home buyers remain conservative.
Despite recent declines in birth rates, the number of new buyers will continue to grow. New buyers are entering the market each year. Despite these facts, buyer demand is down, and interest rates have risen. Mortgage rates have risen, and buyers are afraid prices will continue to rise, which may lead to a price bubble.
Vacation home sales strong for the holidays
The US vacation home market had a strong showing over the holidays, especially in the South and Midwest. Short sales and foreclosures are rising as homeowners struggle to pay their mortgages. Vacation homes, however, continue to be a reliable investment option for those looking for lower-risk investments over the long term.
Nationally, the sales of vacation properties were up 13% from last year. While prices have gone down 6%, all signs point to continued steady growth in the coming years, with more buyers entering the marketplace and fewer sellers competing for their attention. Buyers are also finding more value in older homes that need updates or repairs. This is because they’re priced so much lower than newly constructed properties that don’t provide any additional amenities or features beyond what’s already available/
Mortgages will peak early this year.
Mortgage rates have doubled this year, exceeding most analysts’ expectations as homebuyers have become less likely to apply for a mortgage. While some housing experts say that mortgage rates will return to normal in 2023, other economists believe rates will remain high—with predictions ranging from 6% to 11% by year-end.
The housing finance industry is undergoing a significant shift. Because of technological innovations, new products and services introduced, and widespread recognition of the problems with the current system, housing finance is likely to change significantly over the next several years.
The mortgage market is changing rapidly. As borrowers and lenders seek new ways to finance a home, many programs are being created that help people of all backgrounds become homeowners. Here’s a list of homeowners program 2022:
The real estate market is expected to be stronger in 2023 than in 2022, and the strength of the market will continue to increase as more people move into their new homes. Sales of vacation homes are rising, and first-time homebuyers are getting better access to credit.