A cheerful family of three poses outside a brick house. The father carries the daughter on his back, while the mother stands beside them, all smiling warmly.

Wednesday, October 1st, 2025
For Buyers • Home Prices • First-Time Buyers • Mortgage Rates • Affordability

A recent survey from Bank of America asked aspiring homebuyers what would make them feel more confident about jumping into the market. Unsurprisingly, two major themes stood out: more affordable home prices and lower mortgage rates.

If you’re house hunting in Omaha, Papillion, Elkhorn, Bennington, Council Bluffs, or even Lincoln, you’re probably thinking the same thing. The good news? We’re starting to see some movement in both of these key areas—even right here in eastern Nebraska and western Iowa.

Home Prices Are Starting to Settle

Over the past few years, homes across the Omaha metro shot up in price—sometimes leaving first-time buyers or move-up buyers feeling priced out. Between 2020 and 2021, some neighborhoods saw double-digit increases, fast. But today, the pace of appreciation is slowing, both nationally and right here locally.

Experts predict single-digit growth for home values this year, a pace that’s far more manageable. In areas like Bennington and Elkhorn, price growth has cooled slightly, and while values are still rising in desirable spots like Papillion or Midtown Omaha, it’s happening at a much more moderate pace.

No, home prices aren’t crashing (and probably won’t), but they are stabilizing. That makes budgeting, financing, and planning ahead a lot easier for buyers in our market.

Mortgage Rates Are Coming Down

Mortgage rates made headlines earlier this year when they jumped higher than we’ve seen in a decade. That caused a lot of would-be buyers to press pause.

But lately, we’ve seen some relief. Rates have started easing from those highs, and that’s already making a difference for buyers across our region. Even a small drop—say, from 7.2% to 6.6%—can mean hundreds of dollars saved each month on a typical home in neighborhoods like Millard, Ralston, or South Lincoln.

As Lisa Sturtevant, Chief Economist at Bright MLS, explains:

“Slower price growth coupled with a slight drop in mortgage rates will improve affordability and create a window for some buyers to get into the market.”

Rates are expected to hover in the mid-6% range through the end of the year, with some experts predicting they could dip even lower depending on broader economic trends.

Why This Matters in the Omaha Market

While national headlines can feel disconnected from what’s happening here in Nebraska and western Iowa, the reality is that our local market is also adjusting.

If you’ve been on the fence about buying in areas like West Omaha, Papillion-La Vista, or Lincoln’s southeast side, you may want to take another look. Slower price growth and slightly better rates can make a real difference—especially if you’re a first-time buyer or trying to upsize without overspending.

Bottom Line

The two biggest affordability challenges buyers face—rising prices and high mortgage rates—are both starting to shift in your favor.

If you’re thinking about making a move in Omaha, Lincoln, or the surrounding communities, now’s a good time to reconnect and talk through what’s happening in your local market. Let’s sit down, review your options, and map out a plan that fits your goals heading into 2026.

Posted in blog and tagged , , , , , , , , ,