Delaware home sales sank in December as prices rose from last year

By Realestates News On Sep 23, 2024

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In Delaware and nationally, homes sales dipped in December with interest rates playing a factor, while the median home price rose compared to a year ago.

Sales of existing homes, not new construction, totaled 975 in Delaware, down 8.88% from 1,070 in December 2022. Compared to November, sales were down 7.67% from 1,056.

The dip in home sales in December is not uncommon because of the holidays, weather and other seasonal factors, said George Thomasson, president of the Delaware Association of Realtors.

“However, it’s crucial to note that real estate trends are multifaceted, influenced by a combination of economic conditions, market dynamics and individual preferences,” Thomasson said.

One of those conditions is mortgage rates, and some buyers may be waiting for “perceived advantageous interest rate changes,” he said.

Nationwide sales fell 6.20% in December to a seasonally-adjusted annual rate of 3.78 million, compared to 4.03 million in December 2022. From November, sales dipped 1.05% from 3.82 million.

The December number could be the bottom before sales turn higher this year, said National Association of Realtors chief economist Lawrence Yun.

“Mortgage rates are meaningfully lower compared to just two months ago, and more inventory is expected to appear on the market in upcoming months,” Yun said.

Home sales are usually closed with mortgage rates locked in one to two months earlier, so December sales were probably based on rates in October or November. The average rate on a 30-year, fixed-rate mortgage in October ranged from 7.61% to 8.03%, according to Mortgage News Daily. In November, rates started at 7.69% and fell as low as 7.13%.

The Federal Reserve hasn’t raised interest rates since July, and many financial firms are predicting decreases this year.

The average 30-year mortgage rate dipped to 6.61% Dec. 27 but bounced up to 6.95% as of Jan. 24.

Prices higher than last year, but lower than last month

The median home price rose compared to December 2022, with Delaware prices climbing at a higher rate than the national figure.

In Delaware, the median sold price rose 5.58% to $367,146 compared to $347,731 in December 2022.

Nationally, the median was $382,600, up 4.39% from $366,500 a year ago.

Comparisons to November were down slightly, off by 0.32% in Delaware from $368,331. Nationally, the median price dipped 1.29% from $387,600 in November.

“The increase in the median sold price from December 2022 to December 2023 reflects the ongoing strength and stability of the Delaware real estate market,” Thomasson said. “While there was a slight dip from November to December, the overall trend indicates positive growth.”