Lincoln buyers face higher interest rates and listing prices
LINCOLN, Neb. (KOLN) – Last spring, home buyers rushed to buy homes from a small amount of inventory due to historically low interest rates. This year, there are even fewer homes for sale and prices are higher. Lincoln home buyers are seeing rising interest rates and listing prices.
The number of homes to choose from has only shrunk since the start of the pandemic, making it even harder for buyers to make their next move. ‘
At this time last year, Lincoln realtor Melanie Dawkins said there were 432 homes on the market in Lincoln. This year there are about 100 less than that.
“It’s incredibly difficult for buyers right now,” Dawkins said. “Market inventory, especially for Lincoln, is really low and we’ve been hearing that for a while.”
Back in March, home interest rates were around 3% or lower. Dawkins said that over the past few days the market has changed with rates of 4.5%. This is due to inflation and the low stock of houses on the market.
“We didn’t expect this until the end of this year,” Dawkins said. “What people are looking at is ‘will they continue to rise throughout the year’, and there’s a good chance that’s the case. So that means buyers are losing their power to purchase.
She said the number of homes on the market in Lincoln saw a significant drop in December 2021. While that number has rebounded slightly, it is still low right now.
“There aren’t enough homes to satisfy these people and part of this crisis is coming from the halt in new construction for some businesses,” Dawkins said. “Last year when the price of lumber went up, some builders just said I’m going, I’m going to quit and wait for the lumber to come down.”
According to realtor.com, listing prices this time last year averaged around $220,000 at Lincoln. This year, the average is $250,000 due to the small pool of homes available.
“Don’t imagine shopping for the Palace of Versailles,” Dawkins said. “You look for a home that will work for you for the next five years, then you build that capital that you defer to get a bigger house down the road.”
Dawkins told those who need to buy a home now, do your homework, contact your real estate agent and come up with a plan with your lender.
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