Nebraska's housing market in 2024 shows signs of stabilization after a period of rapid growth. Although home prices remain high, the pace of increase has slowed, and the number of home sales has decreased compared to the previous year. This suggests a shift towards a more balanced market, with buyers having slightly more leverage in negotiations. Let's take a closer look at the details of Nebraska housing market trends throughout 2024.
Nebraska Housing Market Trends in 2024
introduction
Known for its friendly people and open spaces, Nebraska has always been a desirable place to live. But in recent years, the state has seen a significant increase in demand for housing, which is having an impact on the market. Nebraska's housing market has experienced both exciting periods of growth and more challenging times in recent years.
Although there was a period of high activity, some parts of the market have slowed down. I have been involved in real estate for many years and have experienced the ups and downs of various markets firsthand. Now in 2024, we are at a point where we can analyze trends and predict where the market will go in the coming months.
home sales
Looking at the bigger picture, we see that the total number of residential properties sold in Nebraska in 2024 has decreased compared to 2023. There were a total of 23,532 residential properties sold in Nebraska in the past 12 months, which is a decrease compared to 2023, according to ATTOM data. Specifically, when analyzing data for August 2024, 1,967 homes decreased by -14.3% from the previous year.
This decline in sales can be attributed to a variety of factors, including higher interest rates, rising home prices, and a more cautious approach from both buyers and sellers. In my experience, buyers are taking more time to make a decision and are more deliberate about their choices. Others believe some buyers are waiting to see if prices continue to fall before committing. It's all a matter of market perception.
What is affecting the decline in sales?
Here are the factors that I believe are contributing to the decline in home sales.
Rising interest rates: Interest rates are rising throughout 2024, making mortgage payments more expensive. This directly impacts affordability and may cause some prospective buyers to delay their home purchase decision. Limited Inventory: While inventory has increased to some extent in certain parts of Nebraska, finding the right home in your desired location remains a challenge for some buyers. In my opinion, this continues to be a major factor influencing competition among buyers. Economic uncertainty: The economic outlook beyond 2024 is uncertain, and some potential homebuyers may be hesitant to make large purchases when the economy is unpredictable.
housing prices
Median home prices in Nebraska are expected to rise at a slower pace in 2024 than in previous years. According to our data, the median price for a single-family home is currently around $280,000 (as of September 2024). This represents an increase of 1.8% compared to the previous year.
However, it's important to note that the median home price (calculated over the past 12 months) is $259,761. This gives you a more balanced view of the actual average price of homes sold over the past year.
I believe the slowdown in price growth is due to increased inventory and fewer homes for sale in some areas. In my view, median home prices are starting to stabilize, and while we can expect some increases, they likely won't rise as sharply as they have recently.
How do Nebraska home prices compare nationally?
Compared to the national average, Nebraska home prices are still relatively affordable. The national median home price is now higher than Nebraska's median home price. This makes Nebraska a relatively attractive market for those looking to purchase a home in a more affordable location.
housing supply
Housing supply in Nebraska has been a topic of debate for some time. There has been an increase in the number of homes for sale in certain areas of the state, especially in large cities. But overall, supply hasn't quite caught up with demand.
According to ATTOM data, the total number of residential properties in Nebraska is 698,714. While this gives you the total number of properties, it is difficult to identify specific details of available inventory without access to premium data.
I think current market conditions indicate that supply is inching towards a more balanced level, but not yet enough to say it is at an optimal level. Inventory levels may still be low in some regions, which may create difficulties for buyers.
How do new and existing homes contribute to supply?
In some parts of Nebraska, new construction space is increasing to meet housing demand. However, the pace of new construction has not kept pace with overall demand. On the other hand, the number of used housing sales is increasing in some regions, contributing to improving the balance of the market.
market trends
Nebraska housing market trends in 2024 indicate a potential transition from a seller's market to a more balanced market. This market change is influenced by several important factors.
Slower home price growth: Home price growth has slowed compared to previous years. This indicates that the market is less competitive and buyers are no longer under as much pressure to make rash decisions. Increase in housing inventory: The number of homes available for sale is increasing in certain areas. This means buyers have more options to choose from and can take their time finding the right home that fits their needs and budget. Decrease in Sales Volume: The total number of homes sold in Nebraska decreased in 2024 compared to 2023. This is a sign of a slowdown in market activity and may reflect buyer concerns about affordability or economic uncertainty. Decrease in foreclosure activity: Nebraska experienced a notable decrease in foreclosure activity throughout 2024. This may be related to factors such as an improving economy or an improved financial situation for homeowners. Indicator August 2024 Year-on-year change impact Median sales price $280,000 +1.8% Moderate growth in prices suggests market stabilization. Home Sales 1,967 -14.3% The decline in sales volume indicates a cooling market and potential hesitation among buyers. Purchase Loans 1,718 -9.5% Rising interest rates and affordability issues led to a decline in home purchases with financing. Foreclosure filings 75 -38% Significant reduction in foreclosure activity, indicating improved economic conditions and homeowner stability.
Nebraska Housing Market Forecast 2025-2026
Are you thinking of buying or selling a home in Nebraska? You're probably wondering what the future holds for Nebraska's housing market. In short, I think we'll see a lot of things in the next few years. Some regions may see a slight increase in prices, while others may experience a slight decline. Let's dig deeper into the details to understand what is causing these changes.
Factors Affecting the Nebraska Housing Market
Before looking at specific predictions, it helps to understand the big picture. Several factors influence the formation of the housing market, and in my experience, the key factors to focus on are:
Interest rates: When interest rates are low, it's cheaper to borrow and more people buy homes. This could cause prices to rise. Conversely, when interest rates rise, as they have recently, the market can cool down. Job Market: Low unemployment and a strong job market usually means more people have the financial stability to buy a home, which increases demand. Inventory: The number of homes available for sale (inventory) is also important. When there are too many homes on the market and not enough buyers, prices tend to fall. Economic Growth: Overall economic health plays a key role. A strong economy leads to increased confidence and investment in housing.
Nebraska Housing Market Forecast for 2024 and 2025
Let's take a look at the specifics, based on data from Zillow, a trusted real estate information source. We have reorganized the data to make it easier to understand.
Nebraska Metropolitan Statistical Area (MSA) Home Price Forecast
Region October 2024 Forecast (%) December 2024 Forecast (%) September 2025 Forecast (%) Omaha, Nebraska 0 -0.4 0.4 Lincoln, Nebraska 0.1 -0.4 -0.2 Grand Island, Nebraska 0.3 0.1 0.5 Kearney, Nebraska 0 -0.8 -1.4 Norfolk, North East 0.3 -0.2 -0.3 Scottsbluff, Nebraska 0.2 -0.4 -0.6 Fremont, Nebraska 0.2 0 0.8 North Platte, Nebraska 0.4 -0.1 -0.8 Columbus, Nebraska 0.2 -0.1 0.3 Hastings, Nebraska 0.1 -0.4 -0.6 Lexington, Nebraska 0.2 -0.3 -0.3 Beatrice, Nebraska 0.2 -0.4 0.1
What does this data show?
Mixed forecast: As you can see, the forecast varies considerably depending on the region of Nebraska. Some regions, such as Grand Island, are expected to see modest increases throughout the forecast period. Other companies, such as Carney, may also see declines. Short-term vs. long-term: The forecast also shows some interesting short-term fluctuations. For example, some regions are forecast to see a slight decline in house prices in the final quarter of 2024, but a potential recovery in 2025. Omaha and Lincoln: Nebraska's two largest MSAs, Omaha and Lincoln, are showing relatively flat or slightly negative growth. prediction. This suggests that a large market may be stabilizing after a period of rapid price increases.
Will Nebraska home prices fall? Will the market crash?
Based on current data and projections, I do not expect a major collapse in Nebraska's housing market. While we may see modest price declines in some regions, a widespread and dramatic decline is unlikely.
The market simply lacks the signs of overvaluation and speculative frenzy that often precede a crash. However, it is important to remember that forecasts are subject to change and unforeseen events can affect the market.
Looking beyond 2026
It's always difficult to predict what the housing market will look like a few years from now. However, I believe several important factors will shape Nebraska's housing market forecast into 2026 and beyond.
Interest rates: If interest rates remain high, this could continue to put downward pressure on prices. Population Growth: Nebraska's population growth is relatively slow. If this trend continues, housing demand could be constrained. New construction: The pace of construction of new homes also influences the balance between supply and demand.
My personal opinion is that the Nebraska housing market will likely experience a period of relatively slow and steady growth over the next few years. Some areas with strong local economies and attractive amenities may outperform the state average, while others may lag.
Nebraska's housing market is moving toward a more balanced state in 2024. The rapid price increases of the past few years have slowed, the number of homes for sale has decreased, and the inventory of available homes has increased slightly in some areas. I feel that the market will remain relatively stable going forward. Although the interest rate environment remains a factor, we are hopeful that this could lead to a more sustainable market in the long term.
For buyers, this provides a better opportunity to negotiate and find a home that fits their needs and budget. For sellers, that may mean adjusting their expectations for sales prices and marketing strategies. Overall trends suggest that Nebraska's housing market is moving toward a more balanced and healthy state, providing a stable environment for both buyers and sellers.
conclusion
Nebraska's housing market is dynamic and influenced by a variety of factors. The near-term outlook suggests a mixed picture, with some areas showing potential growth and others facing decline, but the overall outlook points to a collapse. Not really.
As always, it's important to stay informed about local market trends and consult a real estate professional before making any major buying or selling decisions.
