Taking a look at the trends we’re seeing in the current market.
Today, I’m thrilled to provide insights into the current real estate landscape in Lincoln, Nebraska. We’ll dive into two crucial aspects: home value appreciation and interest rates.
Over the past five to ten years, Lincoln has experienced remarkable home value appreciation—up to 20% annually! Homeowners have witnessed substantial wealth gains. However, as we look ahead to 2024 and 2027, economists project a return to more typical appreciation rates, ranging from 3% to 5% per year. This is still fantastic news for homeowners, ensuring a steady and healthy growth in property values.
For those contemplating selling, this means the potential to capitalize on your investment, especially if you’ve owned your home for several years. The real estate market is expected to offer a more balanced and sustainable appreciation pattern, providing stability for all parties involved.
“Homeowners have witnessed substantial wealth gains.”
In the last 12 months, interest rates have hit some of the highest points in the past two decades, hovering around 7%. However, looking forward, the consensus among experts is that rates will drop back down into the mid to high fives in the next year. This shift is a welcome relief, bringing them closer to the historical average of around 6% over the past 75 years.
For potential buyers, this represents an opportune moment to enter the market. Even with interest rates at current levels, the overall financial impact is minimal when considering the potential for home value appreciation. Waiting might cost you more than you think. In fact, if you were to buy a home today in Lincoln, the expected value gain over the next year could surpass $15,000, outweighing any increase in interest payments.
If you’re on the fence about buying, our analysis indicates that the financial benefits of purchasing now far outweigh the slight increase in interest rates. By seizing the current market conditions, you could see substantial gains in home value while locking in a reasonable interest rate.
Don’t let uncertainty hold you back. If you’re considering a move, whether buying or selling, now is an excellent time to act. For more detailed information or to schedule a consultation with one of our experienced agents, reach out to us through email, a direct message, or a phone call. We’re here to help you navigate Lincoln’s evolving real estate landscape.