Delaware home sales surge in May as median price climbs nearly $400,000

Lina Portman2 weeks ago

1 3 minutes read

For the second straight month, home sales in Delaware were higher than a year ago, while the median sales price continued to rise, now near $400,000.

In May, sales of existing homes, not new construction, totaled 1,255, compared to 1,122 in April and 1,238 in May 2023. This represents an increase of 11.85% from April and 1.37 % compared to May 2023.

“Delaware’s real estate market has demonstrated resilience and growth,” said George Thomasson, president of the Delaware Association of Realtors.

Sales were better than the previous year, although mortgage interest rates were slightly higher.

Mortgage rates are generally set one to two months before the sale date. So, with the exception of all-cash transactions, May sales were likely based on March and April mortgage rates.

The average rate on a 30-year fixed-rate mortgage in March ranged from 6.85% to 7.11%, according to Mortgage News Daily. In April, the average rate was 6.99% to 7.52%.

A year ago, in March 2023, rates were between 6.38% and 7.10%. In April 2023, they varied between 6.16% and 6.75%.

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The First State's sales results were better than those of the United States as a whole.

Nationally, sales fell 0.72% from April to a seasonally adjusted annual rate of 4.11 million in May. Compared to last year, sales fell 2.84%, compared to 4.23 million in May 2023, according to the National Association of Realtors.

Delaware's median sales price approaches $400,000; National median sets record

The median sales price in May jumped to $393,266 in Delaware, which is considered a record based on statistics from the past two years, but that could not be confirmed Friday by the Delaware Association of Realtors.

The median sales price increased 1.49% from $387,500 in April and from $363,000 in May 2023, a jump of 8.34%.

“Rising median prices underscore the value and demand for properties in our state,” Thomasson said.

He said while rising prices are good news for sellers, it also highlights the challenge in Delaware's real estate market.

“There is a clear need to bring more affordable housing options to the market,” said George Thomasson. “The Delaware General Assembly is currently considering legislation that would create an Affordable Housing Production Task Force to help address this issue.”

The national median sales price in May was $419,300, the highest price on record and an increase of 5.75% from $396,500 a year ago. The National Association of Realtors divides the country into four regions, and all four have seen price increases.

“Housing prices reaching new highs are creating a wider gap between those who own properties and those who want to become first-time home buyers,” said Lawrence Yun, chief economist at the National Association of Realtors. “The mortgage payment on a typical home today is more than double that of homes purchased before 2020.”

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The stock of homes for sale jumps again

A good sign for buyers is that there are more homes to choose from.

As of May, the active inventory of homes for sale in Delaware was 3,459, up 7.89% from April's 3,206 and 32.02% higher than May 2023's 2,620.

The pace of sales accelerated monthly but slowed compared to a year ago. In May, the average number of days a home was on the market was 36, compared to 41.6 in April and 33 in May 2023.

Nationally, housing inventory at the end of May stood at 1.28 million units, up 5.79% from 1.21 million in April and up 18.52% from 1 .08 million a year ago.

In the United States, homes stayed on the market for an average of 24 days in May, up from 26 days in April but up from 18 days in May 2023.

“Ultimately, more inventory will help boost home sales and keep rising house prices in check in the coming months,” Yun said.

Reporter Ben Mace covers real estate, development and business news. Contact him at [email protected].

Delaware's median sales price approaches $400,000; National median sets record

The stock of homes for sale jumps again

Lina Portman

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