If you’re like most of us here in the tri-state area, then you’ve probably been holding your breath as you wait to see what will happen with the housing market over the next year. Fortunately, experts have weighed in with their opinions and there’s some good news. According to recently released research, the Mid-Atlantic region is expected to appreciate more than other parts of the country and our local metro—Delawarians breathe a collective sigh of relief—will see 1% annual appreciation in 2023. Let’s take a closer look.
One of the primary reasons for the optimism surrounding our local real estate market is that while there’s been volatility over the past few years with regard to pricing, the level of volatility has been fairly minor compared to other parts of the country. Additionally, we continue to see historically low inventory levels coupled with an influx of new residents relocating to the state which helps to keep home prices stable and prevent any large drops in home values.
While 1% annual appreciation is substantially less than we’ve experienced in recent years, it represents a move toward a more “normal” and healthy real estate market—one where sellers and buyers have similar leverage during the transaction process. This will open up the market to more buyers feeling like they have a shot at getting under contract, and in turn, more sellers feeling confident that they will be able to find their next home after putting their home up for sale.
All signs point towards positive things for our local real estate market this year! With increasing demand and limited inventory driving up prices (albeit slowly), homeowners can rest assured that their investments are safe—and those looking to buy will be happy with what they find when they finally do make a move! While nothing is certain in life (or real estate), at least now we have something tangible that we can use as a yardstick against which we can measure our expectations going into 2023 and beyond. Only time will tell…but until then let’s keep our fingers crossed and enjoy the ride!