As 2024 progresses, the Lincoln, Nebraska housing market is showing notable trends and developments that are important for future homeowners, sellers, and investors. Understanding these trends can help you make an informed decision about whether to buy, sell, or hold onto real estate in this vibrant city. In this article, we take a closer look at current housing trends, sales data, and explore whether Lincoln, Nebraska is currently a seller's market.
Current Housing Trends in Lincoln, Nebraska
Home prices
What is the average home price?
The median home price in Lincoln, Nebraska is about $281,813 as of mid-2024. According to Zillow, this represents a 3.2% increase over the past year.
Average sales price
The average sales price in Lincoln, Nebraska is a key indicator of the health of the housing market: According to Redfin, as of May 2024, the average sales price was $291,000, up 2.1% year over year.
Average List Price
According to realtor.com, the average asking price of a home in Lincoln, Nebraska varies depending on the area.
Downtown Lincoln: $314,900 Highlands: $300,000 Meadow Lane: $270,000
These prices highlight the differences in property values across regions.
Are house prices falling?
Despite concerns about economic uncertainty and fluctuating interest rates, Lincoln home prices are proving resilient. The steadily increasing median sales price indicates that home values are slowly increasing, not declining.
Home Sales
How has the housing market been performing in the last month?
Last month, Lincoln's housing market saw an active period with a moderate number of transactions. According to Redfin, homes in Lincoln sell in an average of 13 days, indicating a relatively active market.
How many homes were sold?
In terms of sales volume, data from Realtor.com shows that about 150 homes sold in Lincoln last month, a figure that's a strong reflection of market trends.
Are home sales down or up compared to the same month last year?
Compared to previous year’s data, Lincoln home sales are up slightly, with around 142 sales last year, showing a slight increase this year but indicating a stable market.
Housing supply and demand
Is Lincoln's housing market cooling off?
The concept of a “cooling” market is often associated with an increase in supply exceeding demand, meaning sales are slowing. But in Lincoln, Zillow's forecast shows that while supply is increasing in certain areas, overall demand is staying constant. This balance suggests a stable or strong market, rather than one experiencing a significant cooling.
Is Lincoln a real estate market for sellers?
Detailed data analysis shows that Lincoln, Nebraska holds several characteristics of a seller's market.
Low Inventory Levels: Although new listings are increasing, sales rates are outpacing new listings. This low inventory is driving up prices and creating a competitive environment for buyers. Fast Turnover: Homes in Lincoln are selling exceptionally fast, spending an average of just 13 days on the market. This fast turnover is a sign of a strong sellers' market. Price Growth: The continued rise in home prices, even amidst general economic pressures, is a sign of a favorable market for sellers. Buyer Demand: Steady home price increases (3.2% annual increase) and high median sales prices indicate strong buyer demand. This demand is evident across multiple sources, such as Zillow and Redfin, which reflect comprehensive market analysis.
Further insights:
Indicator Data (2024) Sources Average Home Price $281,813 Zillow Average Sales Price $291,000 Redfin Average Offering Price $270,000 – $314,900 Realtor.com Number of Homes Sold Last Month 150 Realtor.com Days on Market 13 Redfin Annual Price Growth 3.2% Zillow
The table above summarizes the key indicators of the Lincoln, Nebraska housing market. These figures not only support the seller's market theory, but also provide a comprehensive overview for potential investors and homeowners.
Lincoln NE housing market forecast for 2024 and beyond
Let's take a closer look at detailed estimates and what prospective buyers, sellers and investors can expect.
Short to medium term forecasts
Notable predictions have been made for the Lincoln, Nebraska housing market based on the latest data from Zillow. These predictions take into account current economic indicators and historical trends.
Date Projected Change in Home Prices (%) June 30, 2024 0 August 31, 2024 -0.7 May 31, 2025 -2.6
Short term (June-August 2024):
The market is expected to remain stable through June 2024 with no significant changes in home prices. Home prices are forecast to decline slightly by 0.7% through August 2024. This slight decline could be attributed to seasonal adjustments or a slight market correction due to fluctuations in interest rates and buyer demand.
Mid-term (May 2025):
Projections suggest a more pronounced change could occur by May 2025, with house prices falling 2.6% from current levels. Such a fall could result from larger economic influences, such as a national market correction, changes in employment rates, or broader economic conditions that affect purchasing power.
Factors that influence predictions
economic situation:
Interest Rates: The Federal Reserve may adjust interest rates over the next few years, which could increase borrowing costs and affect home affordability. Employment Trends: The employment situation in Lincoln plays an important role. Low unemployment and a strong job market may mitigate price declines, but weaker economic conditions may exacerbate price declines.
Housing supply and demand:
Construction Rate: An increase in new housing development will lead to an increase in supply, which could ease price pressures. Population Growth: Lincoln's popularity and population growth rate also influence housing demand. If the city continues to attract new residents, this could stabilize or offset the expected price declines.
National and regional trends:
Trends in the national economy often have a ripple effect on local markets like Lincoln, and monitoring broader trends can help you understand local forecasts.
Long-term outlook
After May 2025, the Lincoln, Nebraska housing market is likely to stabilize. Historical trends suggest that markets generally tend to recover after short-term corrections. Here are some key things to watch going forward:
Technological advancements: The impact of remote work may shift housing demand, potentially attracting more people to areas like Lincoln in search of affordable housing and quality of life. Infrastructure development: Planned or ongoing infrastructure improvements can attract new residents and businesses and drive long-term price growth.
What is the nicest neighborhood in Lincoln, Nebraska?
Identifying the nicest neighborhoods in Lincoln can be subjective based on personal tastes and needs, but there are a few neighborhoods that stand out for their amenities, community feel, and overall standard of living.
1. Country Club District:
Known for its historic homes and manicured lawns, close proximity to Lincoln Country Club provides access to exclusive recreational facilities, and an affluent community with a reputation for safety and high property values.
2. Vintage Heights:
New, spacious homes and well-planned streets are a major draw. Excellent schools and family-friendly parks are major attractions. A growing community with modern amenities and retail nearby.
3. Downtown Lincoln:
Perfect for those seeking an urban lifestyle with access to restaurants, nightlife and cultural attractions, redevelopment efforts have increased its appeal, making luxury apartments and condominiums increasingly popular.
Is the cost of living in Lincoln, Nebraska expensive?
In comparison, Lincoln, Nebraska is more affordable than many other US cities, but costs will vary depending on your lifestyle and specific needs.
Cost of Living Index: Lincoln's cost of living index is 92.3, which is below the national average of 100. This indicates that overall costs, including housing, groceries, and utilities, are generally lower.
Housing costs:
Median home price: $281,813 (as of 2024) Median rental price: Approximately $1,014 per month, reflecting a moderate rental market (from Zillow data).
Utilities and groceries:
Utilities in Lincoln are modest, making the average monthly cost of a standard home affordable. Groceries and transportation costs are about the same as the national average, making everyday living expenses easy to meet.
Quality of Life: Lincoln offers a high quality of life with excellent educational institutions, medical facilities and a vibrant community atmosphere. Additionally, a low crime rate and plenty of recreational activities make it an attractive city without the high cost of living.
In conclusion, while there may be some fluctuations in the housing market in the short to medium term, Lincoln, Nebraska remains a vibrant and great place to live. Potential home buyers and investors should consider the detailed forecast and neighborhood highlights to make an informed decision.