We have some promising news to share! If you own a home or are hoping to own a home in Lincoln or Omaha, you’re in luck. At the start of the quarter, Veros® Real Estate Solutions released their 2022 Q3 VeroFORECAST, which projected that Lincoln and Omaha will be the first and third best-performing markets in the country over the next 12 months.
Veros is an industry leader in enterprise risk management and collateral valuation services. Using home prices in more than 300 of the largest housing markets in the U.S., VeroFORECAST predicts home value based on “rigorous analysis of the fundamentals and interrelationships of numerous economic, housing, and geographic variables pertaining to home value.”
The report predicted that home prices will appreciate on average just 1.5% nationally over the next year, which is a significant drop from the 4.5% annual appreciation forecasted just last quarter. This fascinating set of data grabbed the attention of Forbes, who focused on the implications for Lincoln and Omaha.
Veros predicts Lincoln will have a 7.2% appreciation and Omaha will have a 6.4% appreciation from Q3 2022 to Q3 2023. Richmond, Virginia takes the second place spot (with a predicted 6.9% appreciation) and is the only city in the top five not located in the Midwest.
Higher Interest Rates
A number of factors play into the predicted success of these metros. The most prominent is the effect (or lack of effect) rising interest rates have on cities with lower housing costs. That’s because the implications are felt proportionately to the cost of the home. So if your mortgage is $150,000, your estimated monthly payment for a 30-year mortgage would go from $632 at a 3% rate to $899 at 6%, which is an increase of just $267. But if you are instead dealing with a $500,000 mortgage, that same interest rate change would increase your monthly payment by $890.
Less Bounce-Back from the Pandemic
Unlike Lincoln and Omaha (plus the other Midwestern cities included on the list), some of our country’s larger cities, like New York, Chicago and Los Angeles, experienced more extreme shutdowns during the pandemic, which greatly impacted their economy. Not to mention, these cities saw more dramatic impacts on housing prices, which are now projected to either plateau or depreciate in the months ahead. But Lincoln and Omaha don’t have to bounce back as much, as they weren’t as negatively affected by the pandemic.
Reasons to Live in Lincoln
Aside from all the numbers and statistics, Lincoln is an excellent place to live. Our capital city has garnered a lot of attention for its livability, as it has a relatively lower cost of living, incredible restaurants and bars, a creative culture, excellent schools, great employment opportunities, a central location, a family friendly atmosphere, and a thriving college-town feel.
There is no shortage of things to do in this large city of nearly 300,000. Lincoln is home to a number of major destinations for all ages, including the Sheldon Museum of Art, the Lincoln Children’s Zoo, the Lincoln Children’s Museum, the University of Nebraska State Museum, Sunken Gardens, and many more. Here are just a few reasons why we love living in Lincoln!
Homes for Sale in Lincoln
Containing old and new homes alike, Lincoln’s real estate market is both promising and stable. Lincoln has a relatively affordable median home value of $285,330 which is less than the national average of $440,300 (from the St. Louis Fed). This makes buying into the market reasonable and rational for a variety of different buyers.
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Reasons to Live in Omaha
We may be a bit biased (as many of us here at NP Dodge call this town home), but we think Omaha is the best place to live in the world! There is so much to love about living in the Omaha area, from its thriving food scene and live music to our vast parks and gardens. We have so many attractions to choose from, including the Omaha Zoo, Lauritzen Gardens, the Omaha Children’s Museum, the Durham Museum, the Omaha Performing Arts Center, and much more. Plus, Omaha is home to some of the state’s best eateries, coffee shops, breweries, bars, shops, and other local establishments. Residents and visitors alike can step back in time at the Old Market, Omaha’s most historic and most entertaining neighborhood with cobblestone streets lined with historic properties housing a diverse mix of businesses.
Omaha truly enjoys the best of both worlds — the small-town feel with big city amenities, the nightlife and family-friendly feel, the shiny new buildings alongside gorgeous parks and green spaces. And it’s only growing! With a city population of 486,051 (in 2020), Omaha is the largest city in the state of Nebraska.
Homes for Sale in Omaha
Omaha contains a mix of historic properties and new construction homes in a variety of styles and price points. Check out some of the city’s hottest neighborhoods to learn more about housing styles and amenities throughout Omaha.
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Want to Learn More About Lincoln or Omaha Living?
Contact us to learn more about living in either of these top-performing Nebraska cities. We can connect you with one of our knowledgeable and professional agents serving either Lincoln or Omaha!
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