Regardless of the area of Nebraska from Omaha to Lexington and Fremont to Grand Island and from Lincoln to Papillion or anywhere else in the Cornhusker State the number of foreclosures has multiplied in the past years and has reaped havoc on the local economies. The mortgage meltdown and the global economic collapse which followed have changed the landscape of the 16th largest state in the country.
Foreclosures are still a relative rarity in the state with Nebraska ranking the second lowest state in the nation regarding number of foreclosures per housing gross number of housing unit. This marked difference between Nebraska and the rest of the nation where states such as Michigan and Florida have foreclosure rates that are twice and three the national average.
This difference in foreclosure rates has a great deal to do with the unemployment rates in other states compared to Nebraska which has a very low unemployment percentage. Nebraska rests at 4.6% unemployed compared to California and New York which have spiked to more than double that of Nebraska.
Nebraska is reflective of its overall economic stability with long standing companies and industries that may not have the booming growth potential of other economies but also do not have the volatility of other more dynamic economies. From American insitutions such as Kool-Aid, Cliff Notes, Mutual of Omaha and Union Pacific Railroad all making their homes in Nebraska it is no wonder that the economy is more stable and the unemployment rate is so low in the state.
Nebraska remains one of the most important states in the nations agricultural sector and is responsible for producing a large percentage of the nations livestock, pork, corn and soybeans. These staples of the American economy are not given to the large fluctuations of jobs needed or lost and support the state in a predictable and consistent manner.
The citizens of Nebraska have the 20th highest household income in the nation and home ownership is par with the national average at 67.4 percent. The population of these better than average wage earners are highly concentrated in the metropolitan areas of Omaha and Lincoln. NE foreclosure listings are more easily found in these areas and are the investor stands a better chance of a speedy resale or rent out in the areas of Nebraska that have a population that is dense compared to a population that is disperse over a larger area. Nebraska has 93 counties in all and the majority of these counties have populations that are less than 10,000 residents.
Until the sub-prime mortgages have been purged through refinance, sale or foreclosure, the number of foreclosures will continue at its current pace. Until such time wise investors in Nebraska are looking at foreclosures as the best investment of our time. The real estate investment environment is unlike anything the residents in Nebraska have seen before and should not be overlooked by both professional investors and homebuyers new to the market.
You should be buying homes that have gone to foreclosure. Buying as many homes below market as your credit can withstand. Why buy in a down market? Buying in a down market instead of trying to time the market to purchase on the exact day that the market sees its lowest point will allow smart investors to buy more foreclosed homes and rent them out or selling before buying additional homes and repeating the process. Remember all of those people that lost their homes will still need a home to live in and provide their family shelter. This new real estate environment is where the greatest boom in recent history for the state of Nebraska will likely come from. If you are not in the game, get in the game.