- Sales in the First State in April totaled 1,022, down from 1,139 in March and from 1,434 in April 2022.
- The median home sales price climbed more than 6% in April from March and about 1.8% from April 2022.
After two straight months of gains, Delaware homes sales slid in April and were worse than the national rate, but prices rose.
Sales in the First State totaled 1,022, down 10.27% from 1,139 in March and 28.73% from 1,434 in April 2022.
Chrissy Steele, president of the Delaware Association of Realtors, said sales in April represent the activity of February and March. Finalizing a home sales contract may take a month or two from the time the process starts, including the search for a mortgage loan.
The average rate for a 30-year mortgage started February near 6% but spiked to almost 7% by the end of the month, according to Mortgage News Daily. In March, the rate fell from near 7% to just below 6.4% but crept back up to about 6.6% by the end the month. As of May 19, the average rate was 6.90%, compared to 5.36% a year ago.
Nationwide, sales slid 3.4% in April compared with March to a seasonally adjusted annual rate of 4.28 million. Year-over-year, sales slumped 23.2%, down from 5.57 million in April 2022.
Home sales are bouncing back and forth with no clear pattern, said Lawrence Yun, chief economist with the National Association of Realtors.
“The combination of job gains, limited inventory and fluctuating mortgage rates over the last several months have created an environment of push-pull housing demand,” Yun said.
See the March sale report:Ready to buy or sell? Monthly home sales rise 28% in Delaware
Year-over-year prices up in Delaware, down nationwide
The median sold price in Delaware climbed in April to $363,818, a rise of 6.07% from $342,983 in March, and 1.79% higher than the April 2022 median of $357,430.
“It’s definitely good for sellers that home values remain high,” said Steele. “It’s also good for the buyers who have purchased within the last 24 months and paid higher prices. The real estate market always fluctuates, but it means these buyers’ investment is holding value.”
Nationally, the median sold price in April was $388,800, up 3.49% from $375,700 in March, but down 1.69% from $395,500 in April 2022.
Supply of homes for sale is climbing
The inventory of homes for sale in Delaware was 2,519 in April, up 1.04% compared to 2,493 in March and up 15.23% from 2,186 in April 2022.
Nationally, inventory was 1.04 million units, up 7.2% from 980,000 in March and 1.0% higher than 1.03 million in April 2022.
“The month-over-month increase in new listing inventory is encouraging,” said Steele. “It means more sellers have confidence in their decision to sell and likely reinvest into another home. It also means there are more homes for buyers to choose from.”
In Delaware, homes for sale were on the market for an average of 35 days, down from 38 days in March and up from 30 days in April 2022.
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Nationally, properties remained on the market for an average of 22 days in April, down from 29 days in March and up from 17 days in April 2022.
Steele said the importance of pricing strategy has increased as sales have cooled.
“If a home is priced properly when it first comes on the market, it will sell in single-digit days, and often with multiple offers. Buyer demand is still incredibly strong,” she said.
After two full weeks on the market, if a home hasn’t sold, it’s a strong indication that the sellers need to consider lowering the price.
Another recent trend is fewer buyers waiving home inspections and appraisals like they were willing to do in the past few years.
“While every seller hopes for a cash non-contingent contract, those purchases afford no protections for the buyer. Ultimately, both buyer and seller should get what they’ve bargained for,” Steele said.
Reporter Ben Mace covers real estate, housing and development stories. Reach him at rmace@gannett.com.
