Is it a good time to buy a home in Delaware? Should you sell your home? Will the local real estate market remain turbulent in the coming years or is it leveling out?
Delaware’s real estate market is full of questions. Navigating this complex landscape can be daunting—especially for first-time buyers or sellers. Here, the president of the Delaware Association of Realtors, George Thomasson, walks us through some of this year’s trends—and what they mean for Delawareans hoping to buy or sell in 2024.
What should prospective Delaware homebuyers know about the current real estate market?
Delaware’s real estate market has seen a mix of challenges and opportunities. Despite fluctuations, the state’s housing market is relatively stable, with moderate price increases. Inventory levels have remained somewhat low, which keeps prices competitive, but the market is not experiencing wild volatility.
What advice do you have for first-time home buyers based on current real estate trends?
First-time buyers should be prepared for affordability challenges. With mortgage rates expected to moderate slightly in 2024, there may be some relief, but overall, buying a home will still require significant financial planning. Potential first-time buyers should explore various loan products, such as FHA or VA loans, which offer lower down payments. It’s also advisable to start saving early for a down payment and to stay informed about down payment assistance programs. Buyers should prepare to act quickly in a competitive real estate market, especially when homes are priced well.
What mistakes do you see buyers making within the current real estate market?
One common mistake for buyers is not getting pre-approved for a mortgage before shopping for homes. In a market where inventory is tight and demand is strong, pre-approval can make the difference between securing a home and missing out.
What mistakes are sellers making?
Sellers, on the other hand, often overprice their homes, especially in a real estate market that might feel competitive but isn’t necessarily favoring large price jumps. Overpricing can lead to homes sitting on the market longer than expected, eventually requiring price reductions, which can hurt the sale.
This year, Delaware saw a 21% increase in units sold compared to 2023. Is this part of a larger trend, or is it an unusual jump? What does the increase imply about the Delaware market?
The significant increase in units sold between 2023 and 2024 does suggest a shift, but it’s part of a broader trend of recovery and adjustment after previous years of constrained inventory and volatile demand. This rise indicates a more active real estate market where buyers are motivated, possibly due to stabilizing mortgage rates. However, this could also point to pent-up demand being released rather than an ongoing surge in sales. For Delaware, this suggests that while demand remains strong, the market is balancing out, with prices increasing more moderately and inventory beginning to catch up to buyer interest.
Related: Home Reassessments in Delaware: What You Should Know
