Real Estate Market Trends In New Castle County Delaware - Part One

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Real Estate Agent with Hockessin, Newark, Bear, Wilmington, Middletown, Brandywine
http://actvra.in/8DF

 

Real Estate Market Trends In New Castle County Delaware – Part One

As the spring market starts winding up, my clients and friends are asking me about real estate market trends in New Castle County.  I thought I would dedicate some posts on my blog to shed a little light on the topic.  This is the first in a series of postings, so look for more to follow very soon.  New Castle County is an interesting market.  There are a lot of attorneys here due to so many large corporations making Delaware their state of incorporation.  A large university (UD), a large bank (Bank of America)  and a large multi-national conglomerate (DuPont) tend to dominate employment.   It’s pricier here just due to being on the east coast.  There is further price support for New Castle County real estate because real estate taxes in Delaware are so much lower than New Jersey and Pennsylvania.  Many who work in Philadelphia chose to live here instead, thus creating more demand than there would otherwise be.          

 

Supply and Demand Graph Image

 

Speaking of demand, let’s get right to it.  The laws of supply and demand, as the country has been so brutally reminded of over the last few years, are alive and well doing what they do.  Real estate market trends in New Castle County have followed the same track as most of the country.  Supply is up, demand is down, ‘nuff said really, but I’ll add historical detail for perspective.  The charts I’m posting in this series come directly from TREND, the MLS for the region.  The first chart shows total inventory of single family residences for New Castle County – that is, the homes that were on the market month by month over the last nine years and into the first quarter of 2011. 

                                                                                                                                            New Castle County Inventory of Homes 2002-2011

 

 

The years 2002 through the middle of 2005 are pretty steady with between about 1,200 to 1,500 houses on the market at any given time.  The bubble clearly starts to inflate at the middle of 2005 and 2006 then shows the stampede to the market as homeowners started cashing in on new-found equity in real estate.  Demand was increasing and supply was stretching to meet it, and those who had been in there homes for a long time were taking a tidy profit.  Inventory climbed even higher in 2007, exceeding 3,000 homes on the market in New Castle County for the first time ever.  By the fall of 2007, many real estate professionals were already worrying that the level of inventory would exceed demand as prices continued to inflate – that even without any aberrations in the mortgage markets there would have to be a correction driven by the normal market functions.  By the summer of 2008, most real estate professionals were saying it just cannot last.  Then the Lehman Brothers tragedy hit and prices began their long decline. 

What does this mean for you?  I’m getting there…

 

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Topic:
Real Estate Market Trends
Location:
Delaware New Castle County
Tags:
new castle county delaware real estate
hockessin delaware real estate
wilmington
pennsylvania real estate
housing inventory

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John Simms

Nice summary. Keep it up. 

The thing all sellers should remember is that it only takes one buyer to make a transaction. The other thing is to continuously update and improve your property in the ways it enhances its appeal. For example, skip the swimming pool. Add granite counter tops. Have an appraisal done by the best appraiser and respond to the concerns he expresses about your property by repair and replace. You will enjoy the improvements and done over time they will not be too much of a load. Locate a good handyman and appreciate him or her as your  property is repaired and improved.

When the often unexpected time you need to sell occurs you will be ready, or nearly so.

Hire the best agent you can identify and listen to him or her.

 

 

Jul 01, 2011 10:01 AM #1
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John Talley

Real Estate, New Castle County, Delaware
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