State sees slight downturn in home sales
Total properties sold in Kent and New Castle Counties dipped by 3.6 percent, from 940 sold in May 2021 to 906 sold in May 2022. New Castle County posted a 22.2 percent decrease in properties sold in May 2022, compared to May 2021 and Kent County decreased by 1.2 percent.
The average sale price in the two Delaware counties is up by 10.4 percent, from $298,093 in May 2021 to $329,194 in May 2022. The New Castle County average sale price increased 13.6 percent and Kent County increased 6.9 percent.
The average inventory in the two Delaware counties decreased by 10.5 percent, from 1,158 homes for sale in May 2021 to 1,037 for sale in May 2022. In New Castle County, there were 15.6 percent fewer homes for sale, and in Kent County, there were 0.8 percent fewer homes for sale.
Properties under contract in Delaware decreased by 6.8 percent, from 1,127 properties under contract in May 2021 to 1,050 properties in May of this year.
Prudential Hathaway Gallo’s territory reports on a year-to-date basis, with home sales down four percent from a year ago, with a 15 percent increase in the average price of home sales from May of a year ago.
Gallo reported number of homes on the market in Sussex County during May increased 14% from the previous month, a marked contrast to Kent and New Castle County. Sussex has a high percentage of new home construction, due in large part to a growing older population and available land coupled with pro-growth land-use policies,
Affordable home prices for those with moderate incomes have been an area of concern in Sussex County. The average price of a home in Sussex County is now $580,493.
“While completed home sales and the number of homes on the market have decreased compared to May of last year, we are seeing signs that the number of homes for sale will soon increase slightly,” said Berkshire Hathaway HomeServices Fox & Roach President Joan Docktor. “While this may cause a minimal slowing of the market, I am confident that it will be a seller’s market for at least the next year.”
Homebuyers are facing rising interest rates with the current rate at around six percent after the Federal Reserve boosted interest. Rates had been in the three percent range last year.