Opinion: Chris' Thoughts
A recent Forbes article quotes the chief economist at Fannie Mae, who thinks "The housing market is likely to continue to face the dual affordability constraints of high home prices and elevated interest rates in 2024." This is true in our market, as we continue to see home prices increase and interest rates hovering around 7%.
In order to afford the average home in New Castle County (~$425,000) a buyer would need:
Income - $110,000 +
Down payment - $100,000
Debt - < $500/m
Mortgage Payment = $2,500/m
That certainly prices a large portion of the population out of owning a home when considering that the median household income in Delaware is $80,000.
Despite this, we continue to see many more buyers than sellers, leading to increasing prices and a rise in houses receiving multiple offers, waived inspections, and offers with seller appraisal coverage compared to Q3 and Q4 of 2023. 2024 will continue to be a difficult time to be a buyer in our market.
New Castle County, DE
Cecil County, MD
Chester County, PA
