Are You Ready for Delaware’s 2021 Real Estate Market?
After the initial cooling of the market in the wake of the pandemic, Delaware’s real estate market sprang back into action as motivated buyers looked for more space and wanted to take advantage of historically low mortgage rates. Homeowners throughout Delaware saw the value of their homes rise as the median home sale price hit 18.0% year-over-year. So, what should Delaware real estate agents expect from 2021?
2021 Delaware Real Estate Outlook: Heating Up
Both home sale prices and median home prices increased despite the turbulence of 2020. The median home sale price rose to $305,000 while the median home price reached $280,000. Clearly, Delaware is a sought after relocation destination as we witness an increase in residents from out of state.
While home sales have increased, Delaware’s negative home equity is one of the highest in the country at 4.8%. This number is expected to decrease as the number of home sales and home sale prices drive the value of homes up over the next year. In any other year or circumstance, this figure would be alarming, but given the pandemic’s impact on the country as a whole, the current rate should be considered temporary.
Delinquency rates in Delaware are also some of the highest in the country (1.8%) amid record-breaking unemployment rates in the state this summer. The Blue Hen State’s unemployment rate has seen a sharp drop from this summer’s high of 12.6% in June and was last recorded at 5.1% in November 2020. This decline in the unemployment rate is a positive indicator that the state’s economy is opening back up.
2020 Delaware Real Estate Market Data
|Zillow Home Value Index||$277,979|
|1-Year Change on Home Values||+7.8%|
|1-Year Change on Rent Prices||+0.0%|
|Homes With Negative Equity||4.8%|
|Delinquent on Mortgages||1.8%|
|Buyer’s or Seller’s Market||Seller’s|
Market Insights for Delaware
Delaware’s current active home inventory is at an all-time low, in line with the rest of the country. The current active inventory is reaching lows of 1,500 active units, which is a 54.0% decrease from last year. The current number of homes sold is up 31.0% from last year, and homes are staying on the market for around 119 days. The demand in the state is ridiculously high right now, creating a competitive market and giving a strong advantage to sellers.
Delaware has experienced a growth of demand and interest from new residents who either recently moved or are planning to move. Though Delaware is a quiet state that doesn’t receive much acknowledgment of its bright economy and health care systems, here’s how it ranks among the nation:
- Fifteenth in health care
- Seventeenth in economy
- Nineteenth in infrastructure
- Twenty-third in opportunity
It’s no surprise that Delaware is an appealing real estate market in which to both live and invest. While it is the second smallest state in the nation, it sure packs a punch and attracts millions.
Delaware’s real estate market is expected to continue to be hot heading into the active selling months. Real estate seasonal trends are also expected to return in 2021; real estate agents should be prepared for a busy spring and summer months. Demand and low inventory will continue to drive competition and higher prices, so be conscious that new buyers might feel overwhelmed entering into such a competitive environment.
Take On 2021 With the Best Delaware Real Estate Courses From The CE Shop
Enroll in our Pre-Licensing program now to get your career started and begin connecting your fellow residents with the home of their dreams. Or keep going strong with one of our comprehensive, 100% online Continuing Education packages. Want to stay up to date on everything in Delaware? Join the Mid-Atlantic Real Estate Facebook Group!