Bad news on the home front.

The National Association of Realtors says sales of existing homes dropped more than eight percent.

It’s the largest annual decline in seventeen years but is it reflected in Omaha?

Michelle Grioux is a new Omaha homeowner.

"This is the dining room that's not quite finished, a work in progress," says Grioux.

Her dining room project has been in progress only two weeks.

When Grioux purchased her home recently, she was surprised how much buying power she had.

Grioux says “The amount of space I got for the price. The finished basement, walkout basement, newer roof, newer air conditioning - a lot of pluses to this."

Real estate agents tell Channel 6 the homes in the price range of one-hundred-thousand dollars to two-hundred-thousand dollars, are still selling very fast. It’s into the more expensive homes where sales are a little slower.

“The problem with the oversaturation is mainly with the new homes and the spec market where there's an oversupply of new homes," says Jeff Rensch, a real estate agent.

Jeff Rensch with NP Dodge real estate agency says Omaha has always been insulated from the big price swings that affect the coasts.

Rensch says the number of homes that sold last year was close to number that sold the prior year.

He says it's simply that there are so many new homes out there, especially in new growth areas.

Yet in parts of town, like midtown, there aren't enough homes to sell, says Rensch.

In lower price ranges, houses all across town are going fast.

Buyers with just a little bit more money to spend have the advantage.

Rensch says “It's very fortunate for buyers. It's a good time to buy. What we're finding is the inventory is shrinking. The window of opportunity is shrinking."

Michelle Grioux certainly feels like she bought at the right time.

"Usually when you’re buying something that has been refurbished like this, it goes for a little more. But I was lucky," says Grioux.

Omaha's drop in both new and existing home sales was around five percent.

In southwest Iowa it was around eight percent.

Real estate agents stress 2005 was a record year, so the decline in 2006 wasn't crushing by any means.