New Castle County, Delaware real estate had a great 2019. The median sales price in New Castle County was $239,000. The last time the median price came close to that was in 2007 when the median sales price was $235,000. We all know what happened after that. So, the question is, should we be concerned about another market crash?
The short answer is no. Predatory lending was one of the prime reasons the market crashed. Today the government is much more involved in the lending process, so you don’t see a repeat of the same old practices. Gone are the days of telling a lender how much you make without having to prove it. As a result of predatory lending there were a lot of distressed sales. In 2019 distressed sales only made up 6.7% of the transactions, which is down from 2018. There’s no evidence pointing towards another crash.
Will the median price continue to rise? This question is much more difficult to answer. Over the last 7 years the market has seen 29% appreciation. Those type of numbers are not sustainable. On the other hand, inventory continues to be at a low, so basic economics tells us with lower supply and sustained demand the prices will go up. For that reason, if you had to take an educated guess, chances are we will continue to see prices going up. But, it’s likely to be at a slower rate. If inventory remains about the same we could be looking at small increase in media sale price for 2020 – a good projection would be in the neighborhood $243,000.
Of course, anything can happen, so let’s focus on the now. While the numbers are interesting, it’s important to understand what it means for buyers and sellers. For sellers it means a couple of things - fewer days on market and more money for your property.
If it’s good for sellers does that mean it’s bad for buyers? Yes and no. It’s bad for buyers that are relying on open houses to see properties. Many properties aren’t lasting long enough, so if you are trying to do it on your own you are likely missing out on a lot of properties. On the good side, it looks like values are going to continue to rise. So, as time goes on, you’ll be gaining equity in your new home.
About Farnan Real Estate
Farnan Real Estate offers clients over 25-years of real estate and client services experience, all with the indelible backing of Patterson-Schwartz Real Estate, Delaware's largest independent REALTOR® and leader in the Mid-Atlantic region. The Farnan team is prepared to guide you through the buying/selling process, connect you with trusted partners and aim to reducing the levels of stress that typically come with buying and selling a home. Contact us today to get started with your home buying, selling or real estate investment experience.
All information presented is based on data supplied by BRIGHT MLS. BRIGHT MLS does not guarantee nor is it responsible for its accuracy. Data maintained by the MLS may not reflect all real estate activities in the market. Information is deemed reliable but not guaranteed.