by Rich Rodenburg, Nebraska Home Sales Associate Broker
Those who read my articles or listen to the Nebraska Home Sales radio show (KFOR 1240AM and 103.3FM, Saturdays 8:04-8:30 a.m.) know that I keep constant pulse on our local real estate market. With 10 months of activity behind us, it is a good time to reflect on how Lincoln home sales are faring.
These are numbers pulled from our MLS (multiple listing service):
Ten years ago (2008) there were 2,209 residential homes (excluding new construction) sold in the first 10 months of the year. The average price was $146,200. In the last five years, the numbers have grown from 2,651 homes sold (in the same 10 months in 2013) to more than 3,000 this year. What is significant is that the average price-per-home-sold climbed from $156,473 to $212,163 this year. So you see that from 2008 to 2013, the average home sale only climbed about $10,000. In the last five years (2013-2018) the average price climbed almost $60,000, pricing many first-time homebuyers out of the market.
I recently had Kyle Fischer, Executive VP of the Realtors Association of Lincoln, on the radio show. His analysis is that we are having a slightly slower year this year, but it will still likely be our second busiest ever, behind only 2017.
I have reported about the low inventory of available homes for the past several years. Yet, we set sales records in spite of it. It is not that people weren’t selling, but rather homes sold quickly, keeping the inventory low, the competition high and prices climbing.
In the last half of this year, I feel buyers have cooled off a bit, partly due to the rising prices of homes, and also to the reduced buying power of higher interest rates on loans. (Rates have gone up about 1% in the past few months.)
Owning a home is still the American dream for most, and historically the best way to build wealth. It might take a little longer for some to realize that dream. Interest rates are still very low, and homes are still affordable compared to other parts of the country.
My team is happy to consult with you to see if it makes sense (and you are able) to join in the ‘American Dream.’