2024 Lincoln, Nebraska Real Estate Market Recap: Steady Gains Amidst Shifting Trends
As we close the book on 2024, the Lincoln, Nebraska real estate market presents a mixed yet intriguing picture. With mortgage rates holding steady around 6%, homeowners and prospective buyers alike navigated a year of modest growth, slower sales, and some noticeable shifts in buyer behavior. Here's a look back at how the market performed and what trends emerged throughout the year.
Existing Home Market: Gradual Growth with Fewer Transactions
For those looking to purchase an existing home, 2024 showed a modest increase in home values. The **average sale price for existing homes** in Lincoln reached $325,387, marking a 3.2% increase over 2023. While this rise in prices signals continued demand, it’s important to note that percentage of list price received slipped slightly to 98.9%, down by 0.8% from the previous year. This indicates that while homes were still selling close to asking prices, there was a slight softening in negotiations, perhaps due to a combination of higher interest rates and buyer fatigue.
The **days on market** also saw a noticeable increase. Homes that did sell took, on average, 17 days to go under contract, which is a 30.8% jump from 2023. This trend likely reflects the more cautious approach buyers were taking, as they weighed higher monthly payments and waited for the right deal.
New Construction: Steady Growth Despite Market Cooling
In contrast to the existing home market, the new construction sector showed robust growth in terms of pricing. The **average sale price for new homes** in Lincoln was $468,555, a 5.3% increase from 2023, while the **median sale price** stood at $445,824, also reflecting a 5.3% gain. Builders were able to pass on some of the increased costs, and new construction remained an appealing option for many buyers despite higher price points.
However, the number of new construction sales did see a decline. In total, 542 new construction propertiessold in 2024, which represents a 12.4% decrease from the previous year. This drop can be attributed to a combination of factors: a more limited pool of buyers due to higher mortgage rates, construction delays, and a softening demand as the year progressed.
Quarter-by-Quarter Breakdown: A Year of Two Halves
Looking at the market on a quarterly basis, we saw a clear pattern of stronger activity in the first and second quarters, followed by a sharp decline in Q4. The first half of 2024 was characterized by relatively steady sales, as buyers who could afford higher mortgage rates were still actively looking for homes. However, as the year wore on, we saw a noticeable slowdown in sales activity, particularly in the fourth quarter.
The primary reasons for this shift were twofold: first, many potential buyers were sidelined by the continued high rates, and second, seasonal factors like the approaching winter and holiday distractions typically cool the market at year-end. For both existing homes and new construction, sales slowed as fewer buyers were willing or able to make a move with rates remaining elevated.
What Does This Mean for 2025?
As we look toward the new year, several key factors will shape the Lincoln real estate market. While mortgage rates have stabilized around 6%, there is still uncertainty about future rate movements. If rates hold steady or even decrease, we could see more buyers reenter the market, especially as the economy continues to show resilience. However, if rates increase, the pressure could mount for buyers and sellers alike, leading to further price corrections or slower sales.
Sellers will need to be realistic about their expectations, as the rapid price gains of the past few years may not be as easily replicated in 2025. On the flip side, buyers who are prepared for the financial realities of the current market—especially those able to work with higher mortgage rates—may find opportunities for negotiation, particularly in areas where homes have lingered on the market for longer.
For new construction, builders will likely continue to face rising material and labor costs, which could mean prices for new homes remain on the higher end. However, with inventory tight, new construction will likely remain a strong choice for many looking for homes with modern amenities.
Final Thoughts
2024 in Lincoln was a year of modest gains, tempered by market cooling in the latter half. While the market didn’t experience the dramatic shifts seen in other parts of the country, the impact of higher mortgage rates was felt locally, with slower sales, longer time on the market, and fewer new construction closings. The overall market remained resilient, though, and with a potential rate dip in 2025, Lincoln could see a return to a more balanced, active market.
As we step into 2025, we’ll continue to monitor mortgage trends and economic factors that could either strengthen or dampen the local real estate market. Whether you're thinking of buying, selling, or building, understanding the subtle shifts of 2024 will help you make informed decisions in the year ahead.
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Feel free to reach out if you have any questions about Lincoln's real estate market or would like help navigating the trends in the coming year!
For More Information & For Data References, please visit:
https://gprmlsdocs.com/stats/2024/lincoln_12.pdf
