The housing market is improving and with it means a rise in prices. Although this is great for investors it may have buyers kicking themselves for not buying sooner. Reports from the Associated Press show a 3.8% price jump of the average home price over a 12-month period as of July of this year.
The rise shows few signs of slowing. CoreLogic stated this week that there was a 1.3% rise in average home prices from June to July. New home sales are up and builders’ confidence has caused an increase in new home construction. However, demand still remains high resulting in higher home prices.
Delaware, on the other hand, remains one of the most affordable places to buy. Over the same 12-month period home prices in Delaware have actually dropped 4.8%, to some of the most affordable price points in years. One thing is for sure, buyers looking to cash in on the lowest market conditions in 6 decades still have time in Delaware.
For Investors, and the economy at large, market upswings are a welcome change. If you’re looking to buy a new home, you like where the market is at, not where it’s headed. Homes, of course, are by no means expensive right now. Prices are still below what they were in April 2006 by 27% and mortgage rates are almost at their lowest for the last 60 years.
The recovery of the housing market has just begun and it will interesting to see when Delaware will catch up with the rest of the country and start seeing an increase in home prices. Because of Delaware’s closeness to the beach, city life, and expansive resort communities it has been popular amongst people looking for retirement and vacation homes. The increasing demand should allow Delaware to see price increases similar to the rest of the country in the not-to-distant future.