As we enter the spring buying season in New Castle County, Delaware, the housing market remains tight and competitive for buyers. With limited inventory and rising prices, it's important for buyers to be prepared and informed when entering the market.
Currently, there are only 466 homes actively available for sale, which is extremely limited. This has led to competitive bidding wars, with many homes receiving offers well over the asking price, and buyers waiving contingencies and offering incentives to stand out.
The median days on market (DOM) for homes in New Castle County is just 7 days, indicating that homes are selling quickly once they hit the market. This is a clear sign of a seller's market, where demand is high, and supply is limited.
In terms of pricing, the market has seen a significant increase across all metrics. The median resale pricing for active listings has gone up 4.5% or $15,000 from this time last year, now sitting at $345,000. Median pending pricing is up almost 5% from last year at $320,000 compared to $304,900. And pricing on closed homes saw a significant increase year over year with an 18.5% jump from $269,900 to $319,950.
The limited supply of homes for sale, coupled with the fact that most available homes require additional work from buyers to update them cosmetically or replace aging systems, has contributed to the significant increase in new construction pricing. Many buyers also prefer purchasing new construction to avoid bidding wars and associated hassle. Additionally, higher interest rates have played a role in driving up borrowing costs for builders, which has further contributed to the rise in new construction prices. As a result, median prices for new construction have climbed by $78,000 year over year and now sit at a record high of $576,645 in New Castle County, Delaware.
Overall, the current housing market in New Castle County, Delaware, is highly competitive, with limited inventory and rising prices. Buyers should expect to face bidding wars and be prepared to offer incentives to stand out. It's crucial to work with a knowledgeable and experienced real estate agent who can guide you through the buying process and help you make informed decisions in this fast-paced market.