Rising home values continue to create problems for people living in our state.While Nebraska’s statewide valuation rate increase of 12.9 percent for the last 12 months is significantly less than the national average of 20.7 percent, the current situation is still not good for people living in Nebraska. So, today I would like to highlight some of the problems affecting those looking to purchase a home in Nebraska.
Homeowners have been defaulting on their mortgage loans at an alarming rate in Nebraska. Bank and real estate data from 2022 show that foreclosures went up 132 percent in 2022 compared to 2021.This year distressed homes have increased 178.1 percent from the previous year.The primary reasons for this are rising home values coupled with low income. According to a new report by CBS News most Nebraskans now need an annual income of $83,185 in order to afford a home. Consequently, more and more Nebraskans are finding it difficult to pay their monthly mortgage payments.
Premiums for home insurance policies have gone up sharply. According to Policygenius, the national average of home insurance increased 21 percent from May 2022 to May 2023. As a result, some homeowners are choosing to raise their deductible in order to get a more favorable rate. This puts banks in a bind and makes mortgage lending riskier and more difficult to obtain for homebuyers.
