Good afternoon. I thought I would just write a quick post about a questions I answer numerous times everyday. People are always asking “Have we seen the bottom of the real estate market yet?” and “What’s going on with the market in Lincoln?”
There really isn’t a short answer to it, but I will try to sum it up without going into too much detail. First of all, in some market segments I believe that we are at or close to the bottom. In the lower prices, $200K and below, I believe we are pretty much at the bottom. Most listings coming up at that price are sold very quickly regardless of condition. That being said, it may also be due to the fact that there is a low supply at this point. The prices seem to have stabilized and are even trending upwards in some areas. Who knows though, if we see another big influx of bank-owned properties in this segment the prices may fluxuate to some extent. Bottom line, the numbers are working for investors and if the rental market remains strong, the less expensive houses will sell as long as lenders make the money available.
In the mid range, $250K to $350K, I am seeing about the same results. Homes are selling quickly, but most of the buyers are move-up buyers or even some first-time buyers. Not as many investors in this segment.
The luxury homes, $600K and above seem to still be falling substantially. We are starting to see home owners default on their principle residences whereas it was mostly investors that bought on speculation that had bailed out previously. In the lower luxury homes (tract homes in Verdera priced between $400 and $500K etc.) we are seeing a very competitive market with most listings recieving multiple offers in the first couple days. Currently I think this is a safer risk than the higher priced custom homes.
Hopefully this gives everyone some insight. Obviously there are many factors that can swing the market one way or another. Area (even within Lincoln) makes a difference, interest rates, supply and demand, lending policies and dozens of other variables can cause changes. Please feel free to comment or ask questions on this post.