As a real estate professional, I’ve been closely observing the Delaware market, and the developments in 2023 have been quite telling. Here’s what we anticipate for the 2024 real estate market, based on the trends and data from 2023.
Overview of 2023 Trends
- Rising Home Prices: Delaware’s housing market in 2023 witnessed a notable rise in home prices. In December 2023, home prices were up by 8.7% compared to the previous year. Specifically, the median sold price in October 2023 was $367,134, up from $358,000 in October 2022, reflecting an ongoing upward trend in home prices.
- Decrease in Home Sales and Listings: The number of homes sold dropped, and there was a 5.7% decline in listings, indicating a tightening market.
- High Interest Rates: Mortgage rates reached record highs, impacting buyer affordability and demand.
Predictions for 2024
- Return of Home Sellers: Many sellers who were hesitant in 2023 are expected to enter the market in 2024. This includes baby boomers downsizing, adding to the housing supply.
- Mortgage Rates Stabilizing: After peaking in 2023, we anticipate mortgage rates to stabilize in the second half of 2024, although they will likely remain above 6%.
- Increase in Buyer Activity: With the stabilization of mortgage rates and easing inflation, more buyers are expected to return to the market.
- Continued Rise in Home Prices: Despite the increase in supply, home prices are expected to keep climbing due to the ongoing demand-supply imbalance.
- Boost in New Home Construction Sales: New homes made up a significant portion of sales in 2023, and this trend is expected to continue. Builders are likely to offer concessions to attract buyers.
Market Dynamics
- Seller’s Market in 2024: With rising prices and limited inventory, 2024 is shaping up to be a seller’s market. However, the increasing number of listings will provide more options for buyers.
- Competition from New Builds: In some areas, sellers will face competition from new construction homes, which have been attracting buyers with incentives.
- Is a Housing Market Crash Expected? Due to Delaware’s robust economic growth and demographic trends, a market crash seems highly unlikely.
- Strong Job Market and Livability: Delaware’s job market strength and the state’s appeal, especially in towns with beaches, add to the housing market’s resilience.
Advice for Buyers and Sellers
- Sellers: Now is an opportune time to sell, with high prices and a competitive market. Listing on MLS can result in significantly better offers.
- Buyers: While the market is competitive, the increase in listings in 2024 might offer more choices. It’s important to stay informed about mortgage rate trends and available concessions.
The Delaware real estate market in 2024 is poised to be dynamic, presenting a unique mix of challenges and opportunities for buyers and sellers alike. Understanding these trends and preparing accordingly is crucial for navigating the market successfully. Whether you’re planning to buy a new home, sell your property, or just explore your options in this evolving market, our experienced team is here to guide you every step of the way.
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