Delaware home sales fell in January while the median price rose. What are the reasons?

Delaware home sales slipped in December while prices and inventory rose.

Sales of existing homes, not new construction, totaled 767 in January, down 3.4% from 794 in January 2023.

Among the reasons are “changes in interest rates, economic conditions, housing affordability, job market fluctuations and seasonal variations in buyer demand,” said George Thomasson, president of the Delaware Association of Realtors.

The seasonal variations in demand can be seen in the comparison to December, as sales plunged 21.3% from 975 to 767. That was similar to the drop from December to January a year ago, from 1,070 sales in December 2022 to 794 in January 2023.

The good news was for sellers, as the median sold price climbed about 4.5% to $360,831 in January from $345,293 in January 2023.

Thomasson said property values in Delaware are appreciating due to factors such as low housing inventory and high demand for some homes.

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Although inventory is increasing, it’s still historically low, Thomasson said. The number of homes for sale in January was 2,727, up about 12.6% from 2,422 in January 2024.

Meanwhile, competition among buyers is steady.

The average days a home was listed on the market was 35 in January, down from 36 in January 2023.

The increase in inventory and rise in new listings in January compared to a year ago “could potentially help balance the market by providing more options for buyers,” Thomasson said. “However, whether this improvement is sufficient to alleviate historically low inventory levels depends on the pace of new construction and buyer demand.”

Nationwide sales and prices are up

The First State lagged behind the trends nationwide which showed a sales gain of 3.1% in January and an increase in the median sold price of 5.1% compared to January 2023, according to the National Association of Realtors.

"While home sales remain sizably lower than a couple of years ago, January's monthly gain is the start of more supply and demand," said Lawrence Yun, chief economist at the National Association of Realtors.

The nationwide median existing-home price in January was $379,100, up from $360,800 in January 2023. The association divides the nation into four regions, and all four regions posted price increases.

"Listings were modestly higher, and homebuyers are taking advantage of lower mortgage rates compared to late last year," Yun said.

Home sales are usually closed with mortgage rates locked in one to two months earlier. The average rate on a 30-year, fixed-rate mortgage in November ranged from 7.13% to 7.69%, according to Mortgage News Daily. In December, rates started at 7.09%, dropped as low as 6.62% and then ended at 6.67%. The rate on Feb. 26 was back up to 7.09%.

Reporter Ben Mace covers real estate, development and business news. Reach him at rmace@gannett.com.