REAL ESTATE MARKET DATA

MARKET AREA UPDATE

Year: 2017 Report as of: 1Q

2Q

3Q

4Q

Market Area (City, State): Omaha NE Provided by (Company / Companies): Berkshire Hathaway HomeServices Ambassador Real Estate Provided by RDC Member(s): Katie Adams What are the most significant trends in your current real estate market? (Attach addenda, charts, graphs, etc. as appropriate) *Inventory has increased, however, still below suitable levels. Majority of the increase in price is more about available inventory, than the actual value of the homes. There are still very few first-time buyer homes available. Second time buyers are having to purchase higher priced new construction. Homes 350-500k are stable, homes 500k+ are flat to declining slightly.

REAL ESTATE MARKET DATA

Define Market Area: *

Urban (city limit area only)

**Sales Price (current) Choose one: Average Median **Sales Price (same time prior year) Choose one: Average Median

Metro Area (as defined by MSA)

Other: Please explain:

Single Family (detached)

$

220767

Condominiums / Townhomes (attached)

$

217738

$

206451

$

198434

Average Days on Market ? list to contract (current)

Absorption ? Months of Inventory (last 3 months) Number of active listings divided by the average # of sales per month (for the last 3 months) = # of months needed to sell existing inventory Example: Active Listings = 4500 Closed sales in the past 3 months = 4000

# 23

Increase

Decreasing

Stable

# 33

Increase

Decreasing

Stable

# 1.74

# 2.11

Absorption ? Months of Inventory (same time prior year)

# 1.78

# 2.19

Active Listings

# 2208

# 238

Closed ( total last 3 months)

# 3809

# 339

Expired Listings ( total last 3 months if available)

# 128

# 16

Change in Home Values Sold LP/SP Ratio (last 3 months)

+3-4 %

Increase in past 3 months Stable Decreasing in past 3 months % 99.06

+2 %

Increase in past 3 months Stable Decreasing in past 3 months % 98.80

**Average = the result by adding all sales prices and dividing by the number of units sold

Median = denoting the middle of the range of values

GENERAL ECONOMY

How would you rate the overall economic conditions in area as defined above:

Mixed Stable Healthy Shrinking Depressed

Supply of Listings: (Single family) Shortage

Oversupply

Balanced ~ (Condo/Town home)

Shortage Oversupply Balanced

Overall Market Conditions:

Active

Stable

Sluggish

Flat

Depressed

Unemployment Rate: %

% 2.9 Average ? Please check trend:

Increasing Decreasing

Same

Please describe local economic conditions/climate: (draw upon newspaper articles concerning the coming and going of corporations, layoffs, etc.) * Economic indicators show growth will slow late 2017, despite businesses being very optimistic. We have not had any additional

closings or layoffs announced in recent months.

RENTAL INFORMATION

Is There a Charge for Rental Assistance: Yes No Outsourced Is Home/Condo Rental Information Available in Your MLS: Yes No

Single Family Housing Availability: (3+Bedrooms) Shortage Oversupply

Balanced Average Rent 1600

Condo/Townhome Availability: (2+Bedrooms) Shortage Oversupply

Balanced Average Rent 1400

Apartment Availability:

(2+Bedrooms) Shortage Oversupply

Balanced Average Rent 990

Nebraska Business and Consumer Confidence Indexes: June 2, 2017

Prepared by the UNL College of Business Administration, Bureau of Business Research

Author: Dr. Eric Thompson

Summary: Consumer confidence fell in Nebraska during May 2017 while business confidence remained very strong. The Consumer Confidence Index ? Nebraska (CCI-N) fell to roughly neutral during May. The CCI-N stood at 102.5 in April but fell to 100.4 during May, which is only slightly above the neutral value of 100.0. The outlook of Nebraska businesses remained very strong. The Business Confidence Index ? Nebraska (BCI-N) rose to 110.2 in May, above its April value of 109.1 and well above the neutral value. Business confidence has been very strong in Nebraska during the first five months of 2017. When asked about the most important issue facing their business, customer demand was mentioned by 30 percent of business respondents. Concerns about customer demand were most common in the agriculture and health care industries. The availability and quality of labor was mentioned as the most important issue by 27 percent of respondents. Another 9 percent mentioned competition from other businesses, particularly online businesses. Households reported a variety of financial concerns with 30 percent reporting that their primary financial concerns relate to paying off debt or savings and 49 percent choosing the cost of living including health care costs, taxes, major expenses (furniture, appliances, automobiles or college tuition) and the general cost of living. Household responsese are similar to those from previous months.

Consumer Confidence Index - Nebraska

The Consumer Confidence Index ? Nebraska (CCI-N) summarizes responses to the Survey of Nebraska Households regarding the household financial situation and the environment for a making a major household purchase. Respondents provide their assessment of both current conditions and expectations for the next 6 months. The Survey of Nebraska Households is sent to 500 households each month. The survey asks respondents whether: 1) their household is better off financially now than it was six months ago 2) they expect their household to be better off financially in six months, 3) they believe now is a good time to make a major household purchase (automobile, appliance, or electronics) and 4) they expect it will be a good time to make a major household purchase 6 months in the future. The survey also asks a fifth question "What is the most important financial issue facing your household today?" Individual responses to that question fall into eleven categories. In May, responses were received from 143 of the 500 surveyed households, for a 29 percent response rate.

1

The Consumer Confidence Index ? Nebraska is estimated based on responses to the first four questions. For each question, the share of respondents indicating that they are worse off (or that it is a bad time to make a major household purchase) is subtracted from the percentage who indicate they are better off (or that it is a good time to make a purchase). The number 100 is added to the difference in percentages. A value of 100, therefore, indicates that households are neutral, since a value of 100 would only arise if the same share of households declare that they are better off as declare that they are worse off. A value above 100 indicates strong consumer confidence. A value below 100 indicates weak consumer confidence.

The Consumer Confidence Index ? Nebraska is the average of the values for the four questions. Therefore, a value over 100 for the CCI-N indicates strong consumer confidence.

As seen in Table 1, the Consumer Confidence Index ? Nebraska had a value of 100.4 in May 2017. This value is only slightly above the neutral value of 100.0 and indicates that consumer confidence is close to neutral in the state, with roughly the same number of respondents seeing positive conditions as seeing negative conditions. The value of the index decreased by 2.1 points from 102.5 in April.

Table 1: Consumer Confidence Index - Nebraska, May 2017

Consumer Confidence Index - Nebraska

Month

Index Value

May 2017

100.4

April 2017

102.5

Change from Previous Month

-2.1

Source: Survey of Nebraska Households

Figure 1 shows household responses to the question about the most important financial issue they face. The most common issues raised in May responses were savings (18 percent) and the general cost of living (17 pecent). Overall, 49 percent of respondents chose some type of cost factor as their top issue, whether the cost of health care (16 percent), the general cost of living, taxes (8 percent), or major expenses (8 percent). Thirty percent of respondents choose paying off debt (12 percent) or savings as their top issue. Among other responses, 10 percent chose their level of wages or income as their top issue but just 4 percent choose concerns about their job or business. These shares are similar to those found in previous months.

2

Figure 1: Most Important Financial Issue Facing Nebraska Households, May 2017

20.00% 18.00% 16.00%

18% 17%

16%

14.00%

12.00%

12%

10%

10.00% 8%

8%

8.00%

6.00% 4.00% 2.00%

4%

3%

2%

1%

0.00%

Taxes Paying Off Debt

Saving Social Security/Medicare

Level of Wages/Income Cost of Health Care/Insurance Concerns with Employment/Business

Cost of Living Major Expense Financial Market Performance

Other

Note: Percentages may not sum to 100% due to rounding Source: Survey of Nebraska Households

3

Survey of Nebraska Business

The Business Confidence Index ? Nebraska (BCI-N) summarizes responses to the Survey of Nebraska Business regarding business sales and employment. Respondents provide their assessment of both recent employment and sales growth and expectations for the next 6 months. The Survey of Nebraska Business is sent to 500 Nebraska business establishments each month. The survey asks respondents whether: 1) the dollar sales volume at their business was higher, lower, or about the same as it was over the previous 6 months 2) the dollar sales volume at their business will be higher, lower, or about the same over the next 6 months, 3) the total number of employees and at their business increased, decreased or stayed the same over the last 6 months and 4) the total number of employees at their business will increase, decrease, or stay the same over the next 6 months. The survey also asks "What is the most important issue facing your business today?" Individual responses to that question fall into one dozen categories of business and public policy issues. Surveyed businesses are randomly selected from all industries, including agriculture. Businesses of all sizes are surveyed. In May, responses were received from 138 of the 500 surveyed businesses, for a 28 percent response rate.

The Business Confidence Index ? Nebraska is estimated based on responses to the first four questions. For each question, the percentage of respondents who indicate that sales or employment decreased (or will decrease) is subtracted from the percentage who indicate that sales or employment increased (or will increase). The number 100 is added to the difference in percentages. A value of 100, therefore, indicates that businesses are neutral, since a value of 100 would only arise if the same percentage of businesses declare an increase as declare a decrease. A value above 100 indicates strong business confidence. A value below 100 indicates weak business confidence.

The Business Confidence Index ? Nebraska is the average of the values for the four questions. Therefore, a value over 100 for the BCI-N indicates strong business confidence. Recent values for the Business Confidence Index ? Nebraska are reported in Table 2.

Table 2: Business Confidence Index - Nebraska, May 2017

Business Confidence Index - Nebraska

Month

Index Value

May 2017

110.2

April 2017

109.1

Change from Previous Month

1.1

Source: Survey of Nebraska Business

4

As seen in Table 2, the Business Confidence Index ? Nebraska had a value of 110.2 in May 2017. This value is well above 100 and indicates that business confidence is very strong in Nebraska. The value of the index rose by 1.1 points, from 109.1 in April 2016. This business confidence has held at a high level in Nebraska throughout the year.

Results in Figure 2 show the top concerns of business owners and managers responding to the May survey. Three quarters of responses were related to business operations issues such as customer demand for goods or services, labor availability and quality, competition or the cost of goods and services. Customer demand was the most common top concern, named by 30 percent of respondents. Businesses in agriculture or health care were much more likely to cite concerns with customer demand. Twenty-seven percent of respondents mentioned the quality and availability of labor as their top concern. This is a much higher share than in April and indicates that labor shortages remain a concern in the Nebraska economy. Competition and a need to improve business practices was chosen by 9 percent of respondents. Competition from on-line businesses was a frequent concern. Health care costs were chosen by 9 percent of respondents while taxes were chosen by 8 percent. Government regulations were chosen by 6 percent of respondents.

Figure 2: Most Important Issue Facing Nebraska Businesses, May 2017

35.00% 30%

30.00%

27%

25.00%

20.00%

15.00%

10.00%

6%

8%

9%

6%

9%

5.00% 0.00%

2%

3% 0% 0% 0%

Customer Demand Cost of Goods and Services Labor Availability and Quality

Taxes Health Care Costs/ACA Government Regulation Poor Government Policy Competition/Improve

Business Practices Access to or cost of capital

Weather/Drought Minimum Wage Other

Note: Percentages may not sum to 100% due to rounding Source: Survey of Nebraska Business

5

Nebraska Monthly Economic Indicators: June 21, 2017

Prepared by the UNL College of Business Administration, Bureau of Business Research

Author: Dr. Eric Thompson

Leading Economic Indicator......................................................1 Coincident Economic Indicator.................................................3 Weights and Component Shares..............................................5 Performance of the LEI-N and CEI-N........................................6

Summary: The Leading Economic Indicator ? Nebraska (LEI-N) 1 fell by 0.51% during May of 2017. This is the second consecutive monthly decline in the LEI-N. The declines followed three months of rapid increase from January through March of 2017. Taken together, the LEI-N values imply a moderation in economic growth in Nebraska in late 2017 after strong growth midyear. Among the components of the indicator, business expectations were strong during May while the value of the U.S. dollar fell, which is a positive sign for Nebraska's export-oriented businesses. However, manufacturing hours, building permits and airline passenger counts all declined during May, while initial claims for unemployment insurance rose.

Leading Economic Indicator ? Nebraska

Figure 1 shows the change in the Leading Economic Indicator ? Nebraska (LEI-N) during May 2017 compared to the previous month. The LEI-N predicts economic growth six months into the future. The LEI-N fell by 0.51% in May.

2.46% 1.23% 0.00% -1.23% -2.46%

Figure 1: Change in LEI-N May 2017

Rapid Growth

Moderate Growth

Moderate Decline Rapid Decline

-0.51%

Figure 2 shows the change in the LEI-N over the last six months. The indicator increased sharply during the first quarter of 2017 but fell in April and May. Indicator values over the last six months suggest that economic activity will accelerate in Nebraska during the summer of 2017 but growth will moderate at the end of the year.

1 The author would like to thank Dr. William Walstad for helping to design the LEI-N.

1

2.46% 1.23%

Figure 2: Change in LEI - N Last 6 Months

1.73% 1.96%

1.93%

0.00%

-1.23% -2.46%

-1.15% Dec 16

Jan 17

Feb 17

Mar 17

-1.16%

-0.51%

Apr 17

May 17

Figure 3 shows the components of change in the Leading Economic Indicator ? Nebraska during May 2017. The change in the overall LEI?N is the weighted average of changes in each component (see page 5). Four of the six components of the LEI-N declined during May. There was a decline in building permits, airline passenger counts and manufacturing hours on a seasonally adjusted basis. Initial claims for unemployment insurance also rose during May, signaling a softening of the labor market. However, two components of the LEI-N were positive in May. Business expectations were very strong. Respondents to the May Survey of Nebraska Business predicted strong growth in both sales and employment at their businesses over the next six months. In addition, the value of the U.S. dollar fell modestly during May, a positive development for Nebraska's export-oriented businesses. Note that the trend adjustment component pictured in Figure 3 is discussed on page 5.

Figure 3: LEI-N Components of Change May 2017

2.46% 1.23% 0.00% -1.23% -2.46%

-0.08%

-0.29%

0.10%

-0.96%

0.80% -0.18%

0.10%

Building Permits Airline Passengers Dollar Exchange Rate

Initial UI Claims Manufacturing Hours Business Expectations

Trend Adjustment

2

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download