Get a jump on your week with the latest in local Real Estate Market trends, Mortgage Rates, and Local Happenings
The Main Story...
... The average closed price is up nearly 20% over the 5 year average.. Closings are at pre-pandemic levels and inventories are increasing to meet the demand.
As some buyers "wait for the bubble to burst", there's no indication at all that that will happen any time soon.
May 2023 - Month to Date
Rounding out the month of May, Closed transactions are just below both last month. While the average price is down slightly from last month and and last year, it's still up 19% from the 5 year average.
This month we did have an uptick in the percentage of homes that closed above the original list price and homes that sold below the original list price went down in both percent of total share and the average discount amount.
We're seeing this trend continue into the active inventory, with only 37% of all active listings being discounted and that discount amount slightly higher than 7%.
The total number of active listings has increased and for the first time in a long time, it's increased above 600 homes.
Interest rates have increased, which is being mostly attributed to the Debt Ceiling negotiations happening in Washington DC.
"Marry the House, Date the Rate", as they say.
To sum it up...
Total active listings had a net increase of 18 properties in the last week and the average home prices is still close to +20% over the 5 year average.
May Closed transactions are down about 5% from April, which is fairly normal comared with historical trends. Year to date, the number of closed transactions (1836) are equal to those of both 2019 (1843) and 2020 (1823). When considering this, it's also interesting to note that 30 year fixed mortgage rates for the same week in 2019 (3.99%) and 2020 (3.15%) were much lower than the current rate (6.59%) with the same number of transactions.
Typically, June is a big month for closed transactions, so although inventories have increased slightly, we expect to see Sales in June build from May, too.
All of these metrics indicate a still strong market in Coastal Delaware with no signs of major downward shifts in prices.
Remembering those who are no longer with us; who fought for our freedoms.
With Humble Gratitude.
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*all information in this email is relative to Sussex County Delaware and is not to be construed as the case for Kent or New Castle Counties.
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