DELAWARE - According to a recent article, the average home price in Delaware is up 13.1% over the past year. That figure is expected to rise by almost nine percent in 2021 and more than ten percent in 2022. In addition, home inventories are low, which means that home prices are expected to increase by over 10 percent during the next five years.
Home Prices In Delaware Are Up 13.1% Compared To Last Year
The median sales price of a home in Delaware was $329,100 in August, up 12% over last year, or $40,900. It's up 1% from July. In August, there were 1,990 new listings for homes in Delaware, but it's a relatively small amount compared to the previous month.
Delaware is well-positioned to continue its strong economic performance, thanks to a robust tax revenue profile and institutionalized protections. State finances have remained in balance and its long-term revenue growth is expected to remain above long-term inflation. In addition, the state's long-term liability burden remains above the state's median, indicating a relatively low risk of fiscal trouble.
Home Prices Will Increase Nearly Nine Percent In 2021
The Delaware real estate market is experiencing similar trends to the national real estate market. There is an increase in demand and a lack of inventory, both of which are causing prices to increase. A combination of these factors has made the housing market in Delaware very competitive. This is an excellent time to buy a home in Delaware.
Prices will continue to rise for the foreseeable future, because of low supply and high demand. However, homebuilders are starting to return to work. However, relief is still years away.
Home Prices Will Increase More Than 10% In 2022
The real estate market in Delaware has experienced price fluctuations in the past few years. Despite this, experts expect prices to increase in Delaware by the end of 2022. In addition to the increased price of homes, experts also expect mortgage rates to increase. They believe that a spike in mortgage rates will impact the Delaware real estate market.
Mortgage rates have contributed to the housing market's struggles. In June of this year, the median mortgage payment was 76 percent higher than in June 2019. Meanwhile, wages haven't kept up with rising costs. In July, they increased by only 5.2% over the previous year, falling behind the 8.5% inflation rate. Economists at the MBA don't see a slowdown in prices anytime soon. According to their report, the average home price in Delaware will increase by more than 10% by 2022.
Low Inventory
One of the most lucrative ways to invest your money is in real estate. It's a safer investment than stocks and bonds, and it grows over time. However, investing in Delaware real estate also has certain risks. It's important to use the right tools and consult professionals. Here are some tips to help you invest wisely in Delaware real estate.
First, keep an eye on the housing market. In Delaware, the real estate market continues to become a seller's market. In fact, industry insiders predict that the days on the market will drop from 60 to 40 within a few months. However, buyers should always do their due diligence and not get easily influenced by the fast pace of the market. The low inventory can push buyers into making impulsive and immediate purchases, so make sure to carefully consider every step.
Fear Of Missing Out On Delaware Real Estate
There are a few things you should keep in mind when investing in Delaware real estate in 2023. First, the market will still be a seller's market. However, the average number of days a house is on the market will decrease to 40 from 60. Secondly, don't be afraid to contact a local real estate agent. Third, avoid making an impulsive purchases.
If the current wave of euphoria is any indication, home prices could decline in 2023. The rise in mortgage rates is a factor, as well. But the market's demand is also driven by the lack of supply. According to NAR data, there were 276,000 fewer homes built each year between 2001 and 2020, which left a gap of 5.5 million homes in 2022.
