With beautiful views, a bounty of outdoor recreational activities, and a cost of living that's 7% less than the national average; it's no wonder so many want to make the cornhusker state their home.
So, if you're interested in dipping your toes in the real estate market but aren't sure where to start, this is the article for you. Continue reading for all you need to know before you buy or sell Nebraska real estate.
Ready to buy a property now? Find a Nebraska Realty Agent now or keep reading about what to expect in Nebraska Real Estate in 2023.
Let's learn more about Nebraska real estate, specifically pricing, and demand.
Rising interest rates are affecting cities around the country, and it's expected that Nebraska real estate market will fare no different. CoreLogic's housing price index (HPI) has forecasted a price decrease of almost 3% from November 2022 to November 2023. However, this should not cause any concern to those looking to sell real estate.
As recent job reports have shown, we are currently at the lowest rate of unemployment since 1969. This means that there are plenty of motivated buyers looking for Nebraska homes, and as such, demand is predicted to remain high.
There are several factors impacting the inventory of available Nebraska houses for purchase, but the one that forecasters blame for most of the inventory woes is the severe slowdown of new home builds. This can be attributed to both the increasing cost of obtaining a loan as well as the dearth of building supply inventories.
When demand remains high and inventory stays stubbornly low, house prices trend upward. In many cases, these prices do not reflect the actual value of the home, but instead the high demand and those willing to "pay anything" to secure their dream home. Some factors that contribute to this are low-interest rates, high wages, and easy entry into gaining a loan.
Those who remember the bubble-bursting market crash of 2008 may be wondering if the same is likely to happen again. However, many of the market conditions that existed back then are no longer in play today.
For example, sub-prime mortgages that led to a stark increase in foreclosures saturated the market with housing supply, plummeting real estate prices throughout the country.
With the low supply of homes available today, and a lack of new builds, it is not predicted that we will experience a bubble-bursting catastrophe.
Some good news! The Nebraska real estate is expected to level out over the next five years. Experts forecast that mortgage rates while climbing now, will return to historically normal levels of about 5-6%. This will see prices normalized and a market that favors neither buyer nor seller.
In the frenzied market that we've all experienced over the last few years, it can be daunting to sell or buy real estate in Nebraska. However, you don't have to do it alone. Instead, partner with real estate professionals who have good standing in your community with proven results, and you'll be sure to navigate the process with ease.
Nebraska Realty has served the Omaha and Lincoln, Nebraska communities for 30 years. Much like our friends and neighbors, we have built a reputation of trust, hard work, and reliability.
If you're ready to buy or sell a home, land, or homestead, we can help! Contact us today to get started on your Nebraska real estate journey.