The rise in the number of distressed and foreclosed properties, including bank owned rental properties, has slowed down the home building market in Omaha, Nebraska, in the latter part of the decade. According to realtors, if sellers are finding it hard to unload their properties, home builders are finding it even harder to find a market for new homes.
Realtors stated that the lack of home building activities caused by the increase in the number of Omaha bank owned homes has discouraged homebuyers. They revealed that even interested buyers often retreat from making a purchase when they see that not much development is being done in the area where they wish to buy and vacant lots outnumber areas with houses.
Housing market observers reported that, when Nebraska bank owned homes started rising in the latter part of the decade, most home builders stopped building mostly because they knew that it will be hard to sell new houses when cheaper distressed properties are available by the thousands. This left a huge number of lots vacant in subdivisions and in other residential development areas.
The real estate crisis also spawned bank owned rental properties as more people seemed to prefer renting instead of buying nowadays. However, analysts stated that there are opportunities that can be had by home builders in the downturn. For one, the prices of lots have been lowered by landowners by at least 30%, bringing the prices to a very affordable level that willing builders can easily afford.
Analysts stated that if builders can purchase cheap lots, the cost of building homes will be lower and they can then pass the savings to homebuyers, allowing them to compete better with cheaper bank owned foreclosed homes. They stated that builders should take advantage of these low-priced lots now and start building houses as home buying is expected to grow within the year in the area.
Majority of home market observers believe that in 2011, homebuyers will change their perception about the housing market and more people will be buying new houses instead of opting for bank owned rental properties. Analysts asserted that the improving economy and the expansion of the job market portend a better home-buying market for Omaha this year.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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