Opinion: Chris' Thoughts
Top three observations from the 4th Quarter
Prices are rising significantly.
Housing supply is insufficient and decreasing.
Days on market have increased, while list-to-sale price ratio has slightly decreased; however, limited supply continues to drive prices up.
As you know, when it comes to real estate, location is key. Each city, neighborhood, and county has its unique market dynamics that can greatly differ from national trends. This is particularly true for areas outside the top 50 metro markets, where national data often falls short in capturing the local nuances.
In our market, the fourth quarter surpassed expectations, with prices rising nearly twice the average rate. Additionally, there was a significant drop in the number of houses for sale compared to last year, which already had a low inventory. For New Castle County, where 3,218 homes were sold in 2023, this is much lower than the average over the past decade. Despite an increase in mortgage rates, which was anticipated to slow the market, the tight supply has continued to drive prices upward.
The most noteworthy change in data this quarter is the increase in "days on market," which has risen in all three counties. In a balanced market, we typically expect homes to sell within 30-60 days, and we are approaching this balance from as low as 14 days on the market a year ago. Additionally, there's a drop in the list price to sale price ratio, although it remains largely above what is considered balanced. This may be interpreted as a sign of a market ready to balance, but I anticipate that these figures are influenced by sellers overpricing their homes as the market continues to grow.
Do you know how much equity you have gained in your home this year?
Here is an instant estimate from three macro-data sources:
New Castle County, DE
Cecil County, MD
Chester County, PA
