Lincoln, Nebraska is the capital city of the state of Nebraska, covering over 99,000 square miles and home to almost 300,000 inhabitants featuring beautiful nature, like the SUnken Gardens and the Lincoln Children’s Zoo; it is no wonder that young couples, solo travelers, and families are relocating to this beautiful and aesthetic area.
But how much can you expect to pay for a home in Lincoln, NE? Understanding the Lincoln housing market trends for the past year can help homeowners, and home buyers know the best times to buy a home, sell a house, and rent a property on the market.
Before you begin listing a home or putting in a bed for a new house, analyzing the housing market trends (like the average days on the market, average house sale prices, and real estate market value growth) can help you make the best decision for your wallet.
Average Days on Sale Trends
The Lincoln Housing market is a very competitive home market compared to the national average. The typical home in Lincoln receives three offers and has increased by $270K since the beginning of 2021. The average price per square foot of a home (sqft) in the area has risen almost 9% since last year, showing the high demand for housing in this metropolitan area.
There were over 450 homes sold in June of 2022, showing an increase of 14 houses from the previous year. In the middle of 2022, Lincoln homes sold for a median price of $270K, which is up over 10% since 2021. Plus, the average day on sale for a house in Lincoln is just six days.
Since the housing market is very competitive, homes do not stay on the market for very long. The Redfin Competitive Score is 81 out of 100 for the Lincoln area, stating that many homes get multiple offers. Hot homes can sell for around 8% above the listing price in as little as three days on the market.
Not only can average data help you understand the market, but looking at the most expensive home sales in NE can also provide more insight into the housing market.
Property By Type Trends
Houses in Nebraska increased by nearly 13% since the previous year. Although this shows positive growth, the number of homes sold per month fell to below 5%, and the number of homes for sale also fell below 3.5%. Despite these numbers, this may not be directly indicative of the Lincoln housing market, as this metropolitan area is seeing a growth in houses on the market and homes for sale.
It is helpful to understand the trends of the housing market depending on the property type.
Check out our guide to the Lincoln NE housing market by reading the stats on property trends in Lincoln and nearby cities:
- Single Family Homes — Single-family homes have increased in the median sale price reaching $276,000 in June of 2022, showing a 13.6% growth year over year from the previous year. In the past five years, the single-family home price has continually increased, starting at just below $200K in 2017 and reaching nearly $300K in the middle of 2022. The price of a single-family home has even increased since June of 2021 by approximately $25K per property.
- Townhouses — Townhouses have experienced consistent growth over the past year, reaching a median sale price of $262,500. The percentage of growth came to 5% year over year after seeing the average sale price in June of 2022. The price of a townhome in Lincoln was almost $260K at the beginning of 2021, saw a decrease in the winter of 2021, and rebounded to just over $260K most recently. Over the past five years, the price of a townhouse has increased consistently, starting at $200K in 2017 and reaching $260K in 2022. Although the price increased at the beginning of 2022 to almost $275K, the market dropped in the spring of 2022.
- Condominiums and coops — Condominiums and coops have experienced less growth in the past five years than other property types. For example, in the middle of 2017, the price of a townhome came to around $150K, which currently sits at $225K. Although the market shows growth, there have been significant dips in the past few years, especially after a spike in the latter half of 2019 and the beginning of 2021 (reaching $550K). Despite its ups and downs, the median sale price of condos has increased 19.5% yearly.
If this is confusing to you, working with a professional can help you sell your house in no time. We buy houses in Omaha and can help new home sellers get the most bang for their buck!
Areas of Growth for Property Owners
There are key areas of growth for property owners that can see them get a better deal when selling a house in Lincoln, NE:
Interest rates
Interest rates can influence a person’s financial ability to buy a property. The lower the interest rates in the area, the lower the mortgage will be, leading to more offers and more bids on a house. When the mortgage rates are lower, there is a higher demand for real estate, increasing the sale prices.
Property owners must remember that as interest rates increase, the demand for real estate will decline. In this case, owners should discuss the importance of a bond with potential buyers, as this can help a potential buyer afford the property.
Economy
The second-factor property owners must remember regarding real estate prices in Lincoln is the economy. Analyzing the GDP, employment, and other economic data can help homeowners decide the best time to list their house.
Government subsidies
Legislation, tax credits, subsidies, and supply changes can influence the prices in the housing market and the desirability of real estate.
Location
Location is one of the most important parts of selling a house. Lincoln is a central location that offers proximity to the city, public transportation, schools, and jobs. The good thing is that Lincoln continually grows yearly due to its prevalence as a metropolitan city, the influx of jobs, and the younger population. Check out the 5 factors of a good location and how they can significantly influence your house’s sale price!
Along with boosting the value of your house, consider working with Cash home buyers in Lincoln to get your house off the market in under six days!
Areas of Decline for Property Owners
There are certain areas that property owners must take into consideration to avoid the prices of their homes deteriorating while on the market. Homeowners must consider:
- Neighborhood — Where you’re located can significantly affect the listing price. Crime rates, school districts, and green spaces can all affect the price of a home on the market.
- Repairs and renovations — these can raise your home value, but you must consider which are necessary and which can cost more than they are worth.
- Curb appeal — The aesthetic of your home can affect your house’s listing price and real estate value.
- Energy efficiency — Although this is a relatively modern trend, a home’s energy efficiency can affect the overall sale price.
If you are looking to sell a house fast in Nebraska, it can be worthwhile to consider what factors can detract from your home’s value. Getting rid of any issues — like fixing necessary appliances, increasing the curb appeal, and boosting the energy efficiency of your home — can help get a higher price on the market.
Real Estate Market Value Growth in Lincoln
Currently, in the middle of 2022, it is a seller’s market in the entire state of Nebraska and the city of Lincoln. This means that homeowners should act fast to get the most money possible for selling their property.
Sellers have started to list their houses as too costly on the market, which has prompted buyers to wait until the prices come down. However, homeowners should look at the local real estate housing trends and average housing prices to find out what they should list their house as in Lincoln, NE.
Overall, the average home value in the entire state of Nebraska comes to just below $240K, with the median sale price coming to just over $280K, showing how the seller will profit in the sale process. The average number of homes on the realty market is over 2,500 properties, showing a 0.75% home value increase month after month.
Conclusion
As a home seller and future home buyer, you must know the Lincoln housing market trends. Understanding the average days on the market, property by type trends, areas of growth, and areas of decline can provide a comprehensive overview of what can help boost the for-sale prices of houses.
Reading about the market overview can give a homeowner and their real estate agent enough information regarding home types, market conditions, and home listings to make a smart decision regarding the selling timeline.