Source: https://youtu.be/3rLhz8zTGHE

Hello, New Castle County! It is time for our New Castle County Housing Market Update for August. Let's jump right in.

Last year (2021), New Castle homes were selling for an average of $330,000. But this year (2022), average home prices increased to $360,000. Interestingly, this average sold price stayed the same from May to August this year (2022).

With the average house price seemingly stuck at $360,000 for four months now, everyone is asking the dreaded question: is there a market crash in sight?

Running the Numbers

Before we answer that question, let's run some numbers first. The average price of homes continuously rose from January to May of 2022 before it evens out. So we can safely say that even though prices did not rise, they clearly do not show a downward path. The figures just evened out. 

The Days on Market (DOM) has also remained ten days per home from May to August 2022. In other words, every house listed is usually bought or moved under contract within ten days during the said period. Hence, the rate at which the home is purchased from the day it is listed did not decrease either and didn't show any sign of a downward turn.

It's normal for people to fear that the housing market will crash and prices will decrease significantly. But, in reality, we are not seeing that happen. We are witnessing that the prices have gone to a plateau, which is telling us that the market is starting to stabilize.

So what does this mean for you as a home buyer or a home seller?

1. No Market Crash in Sight

There is no impending market crash in sight in New Castle County. We may not see an increase in home prices, but we do not see a decrease in prices either.

2. Home Price Normalization

Home prices are beginning to stabilize after the steady growth we experienced from last year until May. Listing prices are now at a plateau, which means it will be much smoother for you to purchase a new home compared to the beginning of this year.

3. Accurate Expectations

For home sellers, this is the time for you to have accurate expectations when planning to put your home for sale in the current New Castle market. Prepare yourself as there may not be as much buyer demand, especially if you list your home above the comparable sale values.

Closing Thoughts

Just keep in mind that fewer buyers enter the market due to the current rise of interest rates and inflation at an all-time high. This situation creates a less competitive environment than we saw at the beginning of 2022. But, you can be assured that a market crash is out of sight, and since the market shows signs of stabilizing, this is the best time for you to have a home in New Castle County!

We understand that the state of the current housing market in New Castle County can seem a little bit confusing. So, if you have any further questions, feel free to contact us at Loft Realty by calling  302-753-5025 or emailing us at Hello@LoftTeamDe.com. See you at our New Castle County housing market update next month!