The State of the New Construction Housing Market

- Omaha, Nebraska -

NP Dodge Research and Stats DivisionJanuary 13, 2010

What happened over the last three years?

1,689 for sale in 2006

787 for sale today

Inventory Absorption is what happened!

What happened last year?

Supply and Demand Continues to Level Outand show positive signs.

How many months will it take for our current supply of home to feed the demand?

We have 6 months less supply than we had this time last year.

Price Range of $250,000 and Below:

Over 2/3 of last year this price range was in a neutral market where Neither the buyers or sellers had a negotiating advantage.

Price Range of $250,000 to $500,000:

The $6,500 Tax-Credit will be a major, positive factor in this price range for the 1st QTR of 2010.

Price Range of $500,000 and Above:

The ‘trickle up effect’ will continue to take hold in 2010 which will Lead to a more stable supply and demand for high end homes.

It’s off to the races in 2010 (Tax Credits + Higher Demand = More

Trickle Up)

First Quarter of 2010 will be outstanding (We predict Record Sales)

The trickle up effect will take further hold in the new construction market as consumer confidence continues to improve.

Pent up demand will continue to release in 2010.