Absorption Rates in Omaha

Hi everyone thanks for visiting DEEB Realty’s video blog.

Today, I wanted to talk about absorption rates. If you aren’t familiar with absorption rates, they are a great tool to use on listings. What is an absorption rate? It is a way to get an accurate picture of how the market is doing.

In Omaha, the absorption rate is 4.5

What does this mean? With our current inventory, if no other homes came on the market, it would take 4.5 months to sell everything. We get this number by taking the amount of closed transactions in the first six months of the year, divide by six and then divide that number into the amount of current listings.

So, I wanted to take a look at more specific types of homes and their absorption rates.

Homes priced $200,000 and under have 2,766 current listings which give us an AR of 4 months. Homes priced between $200,000-$300,000 have 722 listing which also gives us an AR of 4.

As we get into higher priced homes, though, the buyers’ pool becomes smaller so the absorption rate increases. Homes priced between $300,000-$500,000 have an AR rate 6.6 and homes above $500,000 are at 13.7 months.

These are really helpful when you are getting ready to sell and want to know how long your home may be on the market.

2013 Omaha Housing Market Update

Hey everyone. Today I wanted to give you an update on the first six months of 2013.  As everyone already knows, it’s been a really good year.

We currently have a decrease in listings; we are down 8.9%.  In terms of pending contracts, though, we are up 7.8%.  We are up 3.7% in closings, as well. So we had a great first six months of 2012, but this year was even better.

The average sales price has increased by 10% in the last 18 months in the Omaha area.  Another remarkable number is the number of closings on new construction; we are up 32.3%!

The average days on market is down 12% with average being 59 days and the median being 31. Of course here at DEEB Realty we’ve always been proud of our success. We continue to lead with an average days on market of 51 and median of 22.

Some other interesting points to note are there are 5,741 properties that have closed in the Omaha area so far this year.  Eighty-nine percent of those homes were under $300,000.

I hope some of these statistics were helpful to you. I really appreciate you watching! If you have any questions please call me 402-491-0100!