Omaha
Buyer's Broker
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Housing Market Worst in 40 Years - Because of the U.S. Economy Debacle
Based on new home sales, the U.S. housing market hasn't been this bad since 1963. In a time of historically low interest rates, a large inventory of homes for sale, and an otherwise superb buyer's market, people just aren't buying! The height of the market was July 2005 when homes were selling at an annual rate of 1.39 Million. In May of this year, the annual rate calculated at 267,000 - about a 72% decline!
Usually, the Midwest isn't hit as hard as the Coasts, but this malaise seems to be permeating Omaha as well. The real estate business is slower than it has been in quite awhile, and some agents are getting out of the business. Of course, being the eternal optimist, I believe the market is still cyclical, and the market will eventually return. My personal opinion is that it will start after the November elections - when a lot of seats in both houses of Congress are overturned, and some semblance of balance is returned to the federal government.
Until we stop spending our grandkids and great-grandkids money in multi-trillion dollar debt, and until we stop trying to tax small business out of existence, and until we start putting people back to work, I'm afraid nothing will change. The economy is simply too unpredictable (and trending the wrong way) to be making important financial decisions such as a home purchase.
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