Yes, there are plenty of opportunities for buyers and sellers searching for Nebraska real estate.
Despite the recent turbulence in the real estate market, it remains a safe and lucrative long-term investment. Here is how to best capitalize on Nebraska's real estate market opportunities.
From the fluctuating market to endless headlines, it's no secret that real estate has experienced some major changes in recent years.
As the pandemic prompted an increase of people to move, already scarce real estate inventory was further strained.
Home prices across the country have skyrocketed an impressive 30% since 2019 due to the overwhelming demand for housing. Then the past year brought higher mortgage rates resulting in less competition, which has led to some small gains in inventory, depending on the real estate market.
With the fluctuating nature of the housing market, you may be hesitant to invest in homeownership in Nebraska. We are here to tell you that investing in a home is still one of the best decisions you can make!
“Owning a home absolutely… strengthens you in terms of wealth building for you and for future generations.”
Here are some relevant statistics that support the idea that owning a home can be a strong tool for building wealth:
- Homeownership is a primary source of wealth for most American households. According to the Federal Reserve, as of 2021, the median net worth of homeowners was $255,000, while the median net worth of renters was just $6,270.
- Home values tend to appreciate over time. According to the National Association of Realtors, the median existing-home price in the United States was $363,300 in 2021, up 16.2% from 2020.
- Homeowners are more likely to have higher net worths than renters. According to a study by the Urban Institute, homeowners' median net worth is 80 times larger than renters' median net worth.
- Homeownership can lead to long-term financial stability. According to a study by the Joint Center for Housing Studies of Harvard University, households that own their homes for more than 20 years have significantly lower housing costs as a percentage of their income than renters.
Overall, these statistics support the idea that owning a home can be an effective way to build wealth over time, both for individuals and for future generations of Nebraskans.
The ability to pass down wealth provides families with a significant financial privilege that allows them to avoid expensive debt.
Despite the ever-shifting real estate market, REALTORS® at Nebraska Realty holds Nebraskans firm throughout the buying or selling process, making homeownership a more obtainable reality than it seems.
Although the real estate market has experienced some turbulence across the country and in Nebraska, market fluctuations don’t erode the long-term advantages of home buying and selling.
In fact, over the last 30 years, despite downturns in the market like the Great Recession, homes have continued to appreciate, according to NAR data.
- According to the Federal Housing Finance Agency (FHFA), which tracks home prices in the United States, the value of homes in the United States has risen by an average of 3.3% per year from 1991 to 2021.
- The S&P CoreLogic Case-Shiller U.S. National Home Price Index, which also tracks home prices in the United States, shows that home prices have increased by an average of 3.5% per year from 1991 to 2021.
- Despite the Great Recession of 2008-2009, which saw a significant decline in home prices, home values have rebounded in the years since. According to the FHFA, the value of homes in the United States has increased by 59% from their low point in the first quarter of 2011.
- Some markets have seen even more significant home price appreciation over the last 30 years. For example, according to the FHFA, homes in the Pacific region of the United States (which includes California, Oregon, and Washington) have appreciated by an average of 4.8% per year from 1991 to 2021.
These figures illustrate that the worth of homes in America has steadily increased over the past three decades - even through economic downturns such as The Great Recession.
Real estate is a great way to protect your finances against the rising costs of inflation. With a fixed-rate mortgage, you can have a guarantee that housing expenses remain constant while property value climbs higher and higher with time. As rents continue to increase year after year, real estate remains an efficient method for keeping pace with growing financial demands.
Owning property in Nebraska can help you stay ahead of inflation, according to a local REALTOR® in Nebraska. "Real estate will keep up with inflation for over a century," they said. "This means that the value of your asset grows even if there's an increase in prices." Investing in real estate can be incredibly rewarding; not only are you preserving your wealth from inflation, but it also provides additional returns on investment as well!
By investing in this asset, you can be sure that its value will rise even during periods of inflation – a great opportunity for growth.
While a home or property's level of appreciation may vary, the truth remains that historically it will appreciate over time.
Homeownership is a powerful strategy for building wealth. In 2021, the median net worth of a homeowner was more than thirty times greater ($300,000) compared to that of renters ($8,000).
Homeownership in Nebraska provides the opportunity for owners to capitalize on their investments.
Homeowners have considerable flexibility when it comes to their property: they can choose to sell, keep and maintain their home over long periods of time or rent it out. This remarkable versatility is essential for building generational wealth and even serves as a way of providing housing for one's family further down the line.
When investing in or selling a home, buyers, and sellers seek transparency to ensure that they receive desired results - especially when navigating a continually evolving real estate landscape.
Nebraska Real Estate Experts
In an ever-evolving housing market, it’s normal for buyers and sellers to feel anxious. That doesn’t mean they have to go it alone.
Nebraska Realty's REALTOR® professionals can take away your worries and make what is often a stressful process an enjoyable one. That's why you chose to team up with us - we have the expertise needed to explain each step of the journey, reducing any anxiety while helping you anticipate potential pitfalls along the way.
Here are some benefits of working with a realtor:
- Access to Expertise: Realtors are licensed professionals with knowledge and experience in the local real estate market. They can provide guidance and advice on all aspects of buying or selling a home, including pricing, negotiations, contracts, and more.
- Network of Resources: Realtors have access to a network of resources, including other real estate professionals, home inspectors, lenders, and more. They can help connect you with the right people to make your transaction go smoothly.
- Marketing and Advertising: When selling a home, a realtor can help market and advertise your property to potential buyers through various channels, such as online listings, open houses, and print advertisements.
- Negotiation Skills: Realtors are skilled negotiators who can help you get the best deal possible when buying or selling a home. They can work on your behalf to negotiate terms, prices, and other important factors.
- Legal Expertise: Real estate transactions can be complex, with legal and regulatory requirements that must be met. A realtor can provide guidance and ensure that all the necessary paperwork and documentation is completed correctly.
- Time Savings: Buying or selling a home can be a time-consuming process. A realtor can handle many of the details and tasks for you, saving you time and reducing the stress of the transaction.
Overall, working with a realtor can provide many benefits and make the process of buying or selling a home smoother and more successful. Nebraska Realty is here to provide you with the expertise and resources needed to make your real estate transaction a success. Contact us today to get started!
And by making that stable investment in a home, consumers are building more over the long term than just financial equity. Purchasing real estate in Nebraska is an opportunity for you to truly invest in something, be a part of a community, and build generational wealth.
Contact a REALTOR® at Nebraska Realty to begin your journey towards homeownership and unlock the rewards of a lifetime. With their expertise and resources, you'll get access to data-driven insights, market trends, and experienced advice that will put you on the path to success!
Ultimately, owning a home in Nebraska is an excellent way for residents to secure their financial future and build generational wealth.