How is The Omaha Real Estate Market 2019?
If you are looking at investing in the Omaha real estate market as a potential investment opportunity, you must read till the end. Omaha, Nebraska is arguably the buckle of the corn belt. It is typically ignored by most, given how much attention is focused on the coasts. If it makes the news, it is generally because of a tornado or flooding of the Missouri River. However, this city on the prairie has a number of good things going for it, and they go well beyond being the home of Warren Buffett.
There are a number of reasons to consider investing in Omaha real estate. Based on the last twelve months, short-term real estate investors have found good returns in Omaha. Is Omaha going to be one of the hottest real estate markets for investors in 2019? To answer this question, let’s take a look at the latest Omaha housing market trends and find out the prospects of investing in Omaha real estate in 2019.
Omaha Real Estate Market Forecasts 2019 & 2020
The median home value in Omaha is $175,900 on Zillow. Omaha home values have gone up 6.8% over the past year and Zillow's Omaha real estate market prediction is that the prices will rise 4.0% in 2020. The median list price per square foot in Omaha is $147, which is lower than the Omaha-Council Bluffs Metro average of $149. The median price of homes currently listed in Omaha is $235,000 while the median price of homes that sold is $191,100. The median rent price in Omaha is $1,300, which is lower than the Omaha-Council Bluffs Metro median of $1,350.
According to LittleBigHomes.com, the Omaha real estate market forecast for the 12 months ending with the 3rd Quarter of 2019 is positive. Their accuracy of the Omaha real estate market trend prediction is 90%. Accordingly, they estimate that the probability for rising home prices in Omaha, NE is 90% during this period. If this Housing Market Forecast is correct, home prices will be higher in the 3rd Quarter of 2019 than they were in the 3rd Quarter of 2018.
Omaha Housing Market Forecast 2019 – 2021
The Omaha housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Omaha housing market trend prediction is 86%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Omaha, NE is 86% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Omaha, Nebraska Real Estate Forecast.
Omaha Real Estate Market Trends
Omaha market trends indicate an increase of $7,500 (4%) in median home sales and a 2% rise in median rent per month over the past year. According to Trulia, the average price per square foot for this same period rose to $135, up from $133. Trulia has 847 resale and new homes for sale in Omaha, NE, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The median sales price for homes in Omaha for Mar 13 to Jun 12 was $187,500 based on 968 home sales. Average price per square foot for Omaha was $135, an increase of 2% compared to the same period last year. The median rent per month for apartments in Omaha for May 17 to Jun 17 was $1,350.
Data by Redfin shows that the Omaha housing market is very competitive. Homes in Omaha receive 2 offers on average and sell in around 10 days. The average sale price of a home in Omaha was $200,000 last month, up 7.5% since last year. The average sale price per square foot in Omaha is $110, up 5.8% since last year. Homes typically receive 2 offers. Homes in the Omaha housing market sell for about 1% below list price and go pending in around 10 days. Hot homes for sale in Omaha, NE can sell for about 1% above list price and go pending in around 3 days.
Omaha Housing Market Statistics
|Median Sales Price||$187,500 (On Trulia)|
|Price Per Square Ft||$135|
|Median Rent Per Month||$1,350|
|Median Household Income||$51,500|
|Transportation||98% people commute by car|
There are 1,800 homes for sale in Omaha, ranging from $7.5K to $7.1M on Realtor.com. 238 of which were newly listed within the last week. Additionally, there are 553 Omaha rental properties, with a range of $450 to $3.8K per month. In April 2019 the housing market in Omaha, NE was a balanced market, which means there was a healthy balance of buyers and sellers in the market.
The median list price of homes in Omaha, NE was $230K in April 2019, trending down -1.1% year-over-year. The median listing price per square foot was $113. The median sale price was $189.5K. On average, homes in Omaha, NE sell after 45 days on the market. The trend for median days on market in Omaha, NE is flat since last month, and flat since last year.
The median list price in Omaha, NE is $259,900 on Movoto.com. The median list price in Omaha went down 5% from May to June. Omaha's home resale inventories is 897, which increased 11 percent since May 2019. The median list price per square foot in Omaha is $118. May 2019 was $118. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in June.
Omaha, NE Single Family And Multi-Family Homes
Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate. Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.
As per the data from the real estate company called Neigborhoodscout.com, the median house price in Omaha, NE is $165,429, which indicates that home prices in Omaha are near the national average for all cities and towns. Single family detached homes are the single most common housing type in Omaha, accounting for 64.73% of the city's housing units.
Other types of housing that are prevalent in Omaha include large apartment complexes or high rise apartments ( 26.10%), row houses and other attached homes ( 4.05%), and a few duplexes, homes converted to apartments or other small apartment buildings ( 4.00%).
The most prevalent building size and type in Omaha are three and four bedroom dwellings, chiefly found in single-family detached homes. The city has a mixture of owners and renters, with 56.39% owning and 43.61% renting.
Currently, there are 1,240 single family homes for sale in Omaha, NE on Zillow. Additionally, there are 254 single family homes for rent in Omaha, NE. Under potential listings, there are about 25 Foreclosed and 355 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Omaha, NE Foreclosures And Bank Owned Homes 2019
Foreclosures will be a factor impacting home prices in Omaha in the next several years. According to Zillow, in Omaha 1.1 homes are foreclosed (per 10,000). This is lower than the national value of 1.2. The percent of delinquent mortgages in Omaha is 0.7%, which is lower than the national value of 1.1%.
With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Omaha homeowners underwater on their mortgage is 5.0%.
|Foreclosures in Omaha||260|
|Homes for Sale||958 (RealtyTrac)|
|Median List Price||$200,000 (0% ⇑ vs Apr 2018)|
There are currently 260 properties in Omaha, NE that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 958. In May 2019, the number of properties that received a foreclosure filing in Omaha, NE was 7% lower than the previous month and 80% lower than the same time last year.
Home sales for April 2019 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home was $0. The median sales price of a foreclosure home was $0, or 0% higher than non-distressed home sales.
Omaha, NE Home Prices And Real Estate Appreciation 2019
In Omaha, the cumulative real estate appreciation rate over the ten years has been 27.01%, which ranks in the top 30% nationwide. This equates to an annual average Omaha house appreciation rate of 2.42%.
During the latest twelve months, Omaha's real estate appreciation rate, at 5.38%, has been at or slightly above the national average. In the latest quarter, Omaha's real estate appreciation rate has been -0.05%, which annualizes to a rate of -0.21%.
The above statistics on real estate appreciation in Omaha, NE were taken from NeighborhoodScout.com. You can visit their page for more information. Relative to Nebraska, their data shows that Omaha's latest annual appreciation rate is higher than 80% of the other cities and towns in Nebraska.
Best Places To Buy Real Estate In Omaha, NE
If you are looking to buy real estate in Omaha, you should know the best places to invest in. There are 286 schools in Omaha, NE. There are 141 elementary schools, 39 middle schools, 34 high schools and 72 private & charter schools. There are 170 neighborhoods in Omaha.
Some of the best neighborhoods in or around Omaha, Nebraska are Benson, Northwest Bellevue and Northwest Omaha. Bent Creek has a median listing price of $650K, making it the most expensive neighborhood. Miller Park – Minne-Lusa is the most affordable neighborhood, with a median listing price of $53,000.
Here are the 10 best neighborhoods in Omaha to invest in real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).
Creighton U / N 24th St
N 24th St / Lake St
N 30th St / Hamilton St
California St / N 33rd St
Grace U / S 10th St
N 30th St / Lake St
Redick Ave / N 24th St
Vinton St / S 20th St
S 24th St / Woolworth Ave
Should You Invest In Omaha Real Estate In 2019?
Is it worth buying a house in Omaha, NE? Investing in real estate is touted as a great way to become wealthy. Many real estate investors have asked themselves if buying a property in Omaha is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Omaha housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Omaha, but we have collected ten evidence based positive things for those who are keen to invest in the Omaha real estate in 2019.
Investing in Omaha real estate will fetch you good returns in the long term as the home prices in Omaha are predicted to rise by 3% to 4% within next year. Let’s take a look at the number of positive things going on in the Omaha real estate market which can help investors who are keen to buy an investment property in this city.
1. Omaha City is Surprisingly Large
Omaha is the largest city in Nebraska. It is home to almost half a million people. Omaha is the center of the Omaha Metropolitan Area, a metro area that includes Council Bluffs, Iowa. This combined statistical area is home to almost a million people.
Roughly 1.3 million live within a fifty mile radius of downtown Omaha. This makes the Omaha real estate market one of the largest in the Midwest. However, size isn’t the only reason to consider Omaha real estate investment.
2. Omaha has a Diverse Economy
Omaha’s economy is robust because it is so diverse. While agricultural products and services are part of the economy, it doesn’t dominate the local economy. For example, a number of financial firms have regional or national headquarters in Omaha.
There are major insurance companies, railroads and architectural firms in the area. As the major services hub for the region, there are hospitals, schools and other service providers based in Omaha, each employing thousands. This has contributed to the stable Omaha housing market and the roughly 3 percent unemployment rate.
3. The State of Nebraska is Financially Healthy
You may read about how one state has higher property taxes than another, while a third state can advertise their lower income tax rate. What Nebraska offers is financial solvency. In 2018, Nebraska was ranked the most fiscally healthy state in the nation.
This is arguably more important than its relatively high 1.8 percent property tax rate. Because they have enough money coming in to pay the bills and make debt payments, they won’t be jacking up the property tax rate to make up for a budget shortfall.
On the flipside, the affordable Omaha housing market means that roughly 2 percent property tax rate turns into a nearly 4,000 dollar a year property tax bill.
4, There is a Sizable Military Presence
Offutt Air Force Base adds more than eight thousand jobs in the Omaha area, and it creates a large population of renters in the Omaha real estate market. More importantly to those considering Omaha real estate investment, the fact that Omaha’s economy is so diverse means that the Omaha housing market won’t crater if the base downsized or outright closed.
5. The Student Market is Sizable
The Omaha housing market hosts a large number of students, though they don’t all attend the flagship University of Nebraska at Omaha. The affiliated medical center is notable for being one of the few dozen advanced cancer hospitals in the United States.
Private universities in the area include Bellevue University, College of Saint Mary, Nebraska Methodist College, Nebraska Christian College, Doane College and Creighton University.
This allows those considering Omaha real estate investment properties to own houses or condos close to multiple schools instead of tying their fortunes to one institution of higher learning.
6. Omaha Housing Market is Affordable
The median home price in the Omaha real estate market is less than 180,000 dollars. This is high by local standards, since the average home price was around 150,000 dollars in 2016. It is low by national standards, roughly 40,000 dollars less than the average home price in the United States.
Rental rates have been climbing more slowly, but they have also been bolstered by the sizable military and student markets that are not as price sensitive as the average person working a service job.
7. Omaha Real Estate Offers Good ROI for Landlords
The average rent in the Omaha housing market is rough 900 dollars a month. Note that you can get much more than this for an Omaha real estate investment property with three or four bedrooms. The typical house in the Omaha area rents for around 1400 dollars.
Back in 2014, Huffington Post ranked Omaha as one of the best places to become a landlord; Omaha is no longer on the top 10 list due to rising property valuations but remains a good overall value.
8. It Has Demographic Momentum on its Side
Omaha real estate investment has a strong, long-term future for one key reason – demographics. The average age of Omaha residents is 35, several years younger than the state average. This is partially due to the number of colleges within the Omaha housing market.
It is also due to the fact that many college students who graduate remain in the strong job market, settle down, and start families. This contributes to the slowly growing demand for Omaha real estate market in a region best known for small towns drying up.
9. The City is Investing in Infrastructure
Residents of Omaha have relatively few complaints compared to other major housing markets. They aren’t complaining about crime, insane rental rates or a lack of services. Instead, they complain about the traffic. However, the government’s own Omaha real estate investment takes the form of infrastructure.
The city has set up a metro transit system that serves downtown, and they’re working on expanding it. Omaha has connected its roughly forty miles of bike trails and dedicated bike lanes, too, to make it easier for people to bike instead of drive to wherever they need to go.
10. The Real Estate Market of Omaha is Healthy
The Omaha real estate market is incredibly healthy. Homes for sale in the Omaha market sold in about a month, ten days faster than the next hottest real estate market. Yet the market is not so hot that property values are skyrocketing.
The market is bolstered by limited supply for affordable starter homes and a healthy economy that attracts people from across the region to come here for work.
There is some new construction, but not so much to cause home values to decline. Instead, it is normally redevelopment; the new building replaces one of the nearly half of area homes that were built before 1970.
Omaha Real Estate Investment
Maybe you have done a bit of real estate investing in Omaha, NE but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. If you are a home buyer or real estate investor, Omaha real estate investment definitely has a track record of generating one of the best long term returns in the U.S. through the last ten years. If you invest wisely in Omaha real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments, you should focus on markets with relatively high population and employment growth. Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Omaha, Nebraska. Omaha isn’t booming, but it isn’t busting, either. It is a slow, steady and solid real estate market that has quite a few things going for it. It is attractive to residents, allowing it to retain its youth, while it attracts people from across the country in search of work. That isn’t going to make the headlines, but it is exactly the sort of long-term value play that we’d associate with the Oracle of Omaha.
Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Omaha, NE is your ability to find great real estate investments in that area.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The aim of this article was to educate investors who are keen to invest in Omaha real estate in 2019. However, we always recommend to do your own research and take help of a local real estate investment counselor.
Other Best Places To Invest in Real Estate in 2019
Another sizzling market to invest in real estate is Bridgeport, CT. While Connecticut ranks among the most heavily taxed jurisdictions in the United States, it is a relative bargain compared to its neighbors. This is why New York residents are moving to the area.
A side benefit of the lower property values in the Bridgeport real estate market is that it translates to a much lower property tax bill when all other things are equal.
Now, talking about the NYC real estate market 2019, there are a no. of positive things to seriously consider despite the steep price tag. Prices are relative, and prices are relatively low given New York City’s recent market conditions.
While there are a number of regulatory and legal changes being proposed, the odds are that this will only increase the number of distressed property owners while eventually yielding higher rental rates. The NYC housing market can be described as cool, though some will call it a buyer’s market.
Things slowed down significantly in 2016 and 2018 as several groups of international buyers found it harder to buy properties or had less need to do so.
The other best place to invest in real estate is Tacoma, WA. Rents and property values in the Tacoma area are rising due to increased demand and constrained supply. This is an ideal time to buy. Furthermore, there are many reasons to consider investing in Tacoma real estate over homes and condominiums in nearby housing markets.
The Tacoma housing market is ideal for those who want to rent to college students. By being home to so many universities, it allows investors to diversify their holdings instead of being beholden to the reputation and enrollment of any particular school.
Tacoma is home to the University of Puget Sound, the University of Washington Tacoma Campus, Faith Evangelical College, Pacific Lutheran University and St. Martin’s University to name a few.
Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here.
One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.
*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
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