The news is out and home building projects started for single family homes in July fell 11 percent to the lowest annual rate in more than 17 years, while building permits tumbled 17.7 percent nationwide.
So what does this mean for someone who lives in Delaware? Well if you live in the northern part of the state that has a mature housing market, then not much. The raw land around Wilmington, Delaware has already been developed and therefore building permits and housing starts don't really play a significant factor in the housing market.
However, this news may affect those who live in Kent, Sussex or the lower part of New Castle County like the Middletown area. Believe it or not, but this is GOOD NEWS! If fewer new homes are being put on the market then that means less inventory will come online. You see anything over a 6 month supply of homes on the market is not considered a "balanced market". If inventory is greater then the 6 month mark then we are in a buyers market vs. a sellers market for a timeline less then 6 months. Currently in New Castle County we have an 8 month supply of homes on the market and therefore are in a buyers market.
The bad news is that as fewer new construction homes are coming on the market, it is a certainty that more foreclosures are to come. Remember that in general what you read on the internet and in newspapers are figures based on a national level. You wouldn't know it from reading every doom and gloom headline, but Delaware is fairing much better then the national market. Real estate is local and if you are planning on buying or selling a home then it would be my pleasure to provide you with the most recent facts, figures and real estate comparables in the area. Whether you are looking to move tomorrow or just want to get an update on neighborhood sales, then please feel free to contact me at 302-478-6425 of email me at billiechubb@gmail.com.
- - - - - - -
Billie Chubb
Chubb Realty Group
302-478-6425
"Born Here, Raised Here, Top Realtor Here."
Comments(0)