Omaha Housing Stable Despite Presence of Foreclosed Tax Deeds for Sale

by on Foreclosures

The supply of foreclosure tax deeds for sale and other types of distressed properties did not rise in Omaha, Nebraska like in other U.S. regions, but the metro area was also affected by the housing market crisis. Recently though, local housing industry analysts stated that the market is stabilizing.

Omaha foreclosures for sale might not be as high as in other metro areas, but a lot of residents still expressed worries over the condition of the economy and the housing market. In March, the overall reluctance in purchasing homes was manifested in the area's pending sales figures which have declined from one year ago. Pending sales contracts during March 2011 totaled 1,002, down by 23% from a year ago when 1,305 houses were under contract.

However, most analysts asserted that the fewer number of pending contracts for residential non-foreclosures and foreclosures in Nebraska this year was largely due to the inflated pending sales figures recorded last year which can be attributed to the federal government's tax incentive program. They also asserted that figures for March actually provide a positive picture of the region's housing sector since they were up by almost 50% when compared with February 2011. In addition, the March 2011 total marked only the 11th time that pending sales went over 1,000 in 44 months.

Meanwhile, housing construction activities still lag behind sales of foreclosure tax deeds for sale and other existing dwellings in the area. According to local analysts, tight standards in the lending market are affecting housing sales, particularly in the new home segment. In addition, mortgage insurance costs for loans issued by the U.S. Federal Housing Administration have recently increased, further eroding the ability of would-be buyers to close sales transactions.

The amount of properties under bank foreclosure listings that can be found in the area also affects the confidence of sellers and buyers in Omaha, real estate analysts further noted. A survey of several residents in Sarpy and Douglas Counties recently revealed that foreclosures, continuous decreases in housing prices and the unstable condition of the region's economy are the primary concerns among people who wish to buy homes or sell their own dwellings.

However, most also agree that prices of existing dwellings, including foreclosure tax deeds for sale, have never been this affordable. Some also cited low interest rates and the vast amount of choices provided by the area's housing inventory as factors that encourage them to buy residential properties at this time.