Did you know that in the United States, the average home price was about $375,000 in 2021? 

It is no secret that there has been a significant spike in demand for houses since the pandemic began. Lincoln has been no exception to this, with there being a lot of issues for supply in Lincoln real estate. 

So, what has changed in that area over the last two years? What should the Lincoln real estate market expect to look like in 2022? 

This is an overview of what the current market looks like. 

House Supply 

The first issue for homebuyers in the Lincoln area is that there are simply not enough houses to go around. A study was conducted for how many houses were sold in early 2020 compared to early 2021 in the area. 

One conclusion was that sales in the first quarter of 2021 were down 9.5% compared to the year prior. There was an even more steep decline when looking at March 2021 vs. March 2020 specifically. A 60% decline in home sales was noted by the former compared to the latter. 

In total, only 179 homes were sold in March 2021, but that was not because demand for those homes was an issue. 

Average Home Price 

Over the last two years, the highest home price in Lincoln has been around the last quarter of 2021. There, the average price of a home sold in the area was around $259,000

One of the biggest gains between quarters was between the first and second quarters of 2021. There, the average value of a house went up by $14,000. The original value was around $229,000, and then it rose to $243,000 the next quarter. 

For those wondering what the average value was before the pandemic, that barely changed between the first three quarters of 2020. It stayed consistently between $215,000 and $220,000. 

Mortgage Rate

Another factor that homeowners have to take into consideration is how much the mortgage rate is going to be. During the pandemic, there were historic lows, with weeks having averages around 2.8%. 

Since 2022 began, the mortgage rates have been rising once again. As of March, it is now around 3.85%, with some reports of there being over 4% already. 

The average mortgage rate has been rising the entire first quarter of 2022, so with that in mind; homeowners are going to have to prepare to pay a little more money in interest for their homes. 

However, as long as the supply of homes remains low, there may be enough buyers out there where the rising mortgage rates do not matter. 

Keep Up With Lincoln Real Estate 

The year 2022 could be an interesting one for Lincoln real estate because it is one that homebuyers hope that there is more house supply. If that does not increase, then you could see both rising home prices and rising mortgage rates, with some possible buyers being priced out. 

Are you looking to buy or sell a home in the Lincoln real estate market? Contact us today to get started.