Interest Rate Hikes Have Cooled Nebraska Housing Market

A Nebraska real estate expert says rising interest rates and a slowing economy have slowed home sales, but are working in favor of buyers.

The latest Commerce Department report showing a drop in gross domestic product last quarter includes a 14 percent drop in home construction on an annual basis.

Connie Burleigh, president of the Nebraska Realtors Association, said that, and rising interest rates, have affected the housing market in the state.

“I think that to some degree it’s slowed it slightly. It’s a little better positioned for buyers right now than it was a couple months ago. But it certainly hasn’t stopped it,” Burleigh said.

Burleigh said in the eastern Nebraska market area, including Omaha, Lincoln, York and Beatrice, there were 831 new houses either under construction or finished that are for sale in June, compared to 565 a year earlier.

“We’ve had such a shortage for quite some time that, even a few months ago things were just selling as soon as they came on the market, and for huge gains over the listing price. Where now, it’s slowed enough that at least a buyer feels that they can go out and possibly get a house and not pay 20 or 30 or 40 thousand dollars over asking price,” she said.

Still, Burleigh said, the median price of a house in June was $270,000, compared to $245,000 a year earlier.