Read My Predictions for Delaware Real Estate for 2024
As we bid farewell to 2023, it is with great pleasure that we take a moment to update you on the real estate market in Delaware in 2023 and to share our predictions for 2024.
In 2023, one word aptly describes the Delaware real estate market – sluggish. While we observed a continued upward trajectory in home prices, with a notable increase of 7.7% compared to 2022, there was a stark contrast in the sales figures. Home sales experienced a significant drop of nearly 20%, primarily attributed to the limited availability of housing inventory and the concurrent rise in interest rates. Remarkably, the supply of homes on the market remained scarce, with just a month’s worth of inventory available. If you are considering selling your property, now is undoubtedly an opportune time to do so. Furthermore, the median days on the market remained relatively consistent at 22 days throughout the year.
As we turn our attention to the outlook for 2024, we believe that Delaware’s housing market is poised for some noteworthy shifts. Here are our market predictions for the upcoming year:
Home Sellers Will Return to the Market in 2024: We anticipate that many sellers who chose to remain on the sidelines in 2023 will re-enter the market. This resurgence may be driven by factors such as new job opportunities or a desire to relocate to more cost-effective areas. Additionally, it’s worth noting that experts have predicted a surge in baby boomers looking to downsize, potentially adding up to 30 million housing units.
Mortgage Interest Rates Will Stabilize by the 2nd Half of 2024: In 2023, we witnessed a significant spike in mortgage rates, reaching a 23-year high of 7.79% in October. However, by November, rates had already started to decrease to 7.35%, influenced by a softening labor market and a slowing economy. We anticipate that while mortgage rates may remain above 6%, they will stabilize during the second half of the year.
The Number of Home Buyers Will Rise: Historically high interest rates deterred potential buyers in 2023. Nevertheless, as interest rates gradually decreased to 7.35% in November, we observed a resurgence in mortgage demand. The easing of inflation and the stabilization of interest rates are expected to bring back prospective homebuyers.
Home Prices Will Continue to Rise: Throughout 2023, home prices experienced consistent year-over-year growth, with the average price reaching $339,500 in September. Our experts predict that this trend will persist until there is a notable shift in the supply-and-demand dynamic.
New Home Construction Sales Will Increase: In September 2023, 12.3% of homes purchased were new constructions, marking the highest percentage since 2022. Homebuilders also offered enticing concessions worth $30,000 to attract buyers throughout the year.
We trust that these insights into the Delaware real estate market for 2023 and our predictions for 2024 will provide you with valuable information as you navigate your real estate endeavors in the coming year. Should you have any questions or require further assistance, please do not hesitate to reach out to our dedicated team.