COVID changed every element of the American economy, Nebraska real estate included. Whether you're a seasoned homeowner or a first-time buyer, you're going to encounter a housing market unlike any you've experienced before.
Does that mean the pandemic ground the housing market to a halt?
You may be surprised to learn that the answer is a resounding no. Our outlook for 2021 Nebraska real estate is actually far more interesting and optimistic than that. Read on to learn what this market will look like in 2021.
Interest Rates Will Stay Low—Encouraging Buyers
Mortgage rates recently hit record lows. Those lows reflect economic uncertainty stemming from COVID.
But they also reflect the Federal Reserve’s measures to protect the economy by lowering federal interest rates. Those low-interest rates translate to big savings for mortgage refinancers and first-time homebuyers.
There are signals of improvement in both the economy and the pandemic. But the Federal Reserve intends to keep interest rates low until the economy markedly improves. Mortgage rates in 2021 should continue to hover around 3%, encouraging buyers.
First-Time Buyers Will Shape the Nebraska Real Estate Market
Millennials tired of cramped living spaces and sky-high rents were already eyeing homeownership in early 2020. For many young families, COVID was just the final straw. Why work from home in a one-bedroom rental when you could be enjoying a house?
Nebraska has seen and will continue to see an influx of millennial homebuyers. Local wages, housing prices, and a high number of jobs in industries relatively sheltered from the pandemic all factored into the National Association of Realtors’ decision to name Omaha-Council Bluffs one of the top ten best places for millennial homebuyers. Other Nebraska job centers have followed suit.
Sellers Control the Market
While lots and lots of families are trying to buy a home in Nebraska, inventory remains tight. That’s especially true for the more affordable housing stock many younger homebuyers are seeking out.
The result? Sellers are in a better position than ever. The typical seller in 2021 can expect to field many competitive offers on their home. They can expect to close a sale faster than ever, and many winning offers will exceed the home’s listed price substantially.
Good market conditions for selling a home in Nebraska, of course, can create more difficulties for buyers. If you’re a young would-be homebuyer, however, take heart: increased housing demand will stimulate further new home construction.
Local Expertise Will Win the Day
What will the Nebraska real estate market look like in 2022 and beyond? While there are certainly plenty of reasons for optimism, no one knows for sure. Changing pandemic conditions, fluctuations in inventory, government rules and regulations, and a host of other factors could all shape Nebraska real estate trends in unpredictable ways.
What won’t change, however, is the value of local market expertise.
Nebraska Realty has experience helping all kinds of buyers and sellers, whether they’re looking for an affordable new home or trying to take advantage of the market and downsize. We use our decades of experience and local expertise to help buyers and sellers make the best of any housing market. Contact us today to learn more about the best way to buy or sell a Nebraska home.