The Delaware Real Estate Market: Realtors Explain Why There’s Never Been a Better Time to Buy




Realtor Jim Pettit of Wilmington has been here before, on the backside of a slump in home sales. The market was in similar straits when he entered the industry in the late 1980s, shortly after a mid-decade boom had agents “writing contracts on the hoods of their cars.”

Though he just missed the big action back then, he got a taste of it five years ago, when the market had returned to the glory days. “It was as if buyers and sellers could do no wrong,” Pettit says. “The sellers were getting three or four offers over market value. It was crazy.”

But after three or four years of hyperactivity and a period of owners seeing their investment appreciate at about 3 percent per year, the market crashed. It hasn’t recovered yet, but after more than three years, some signs indicate that a recovery may be on the way.

“The good news is that buyers have come back,” Pettit says. “They’re not buying over value, but at least their mental state is a bit better, more upbeat. And mortgage rates are the best they’ve ever been in our lifetime. We’re hoping that this year, we’ll have a nice spring market.”

So how do things stand, exactly? First of all, a caveat: No one wants to predict when prices will rise to past peaks. There are simply too many factors in play, many of them out of anyone’s control (except possibly lenders that are sitting on foreclosed properties).

Second, no one agrees on where, precisely, values stand. Though Pettit says they’ve recovered to 2006-2007 levels after three years of “bumping along the bottom,” Steven Sachs of Appraisal Access in Wilmington puts them at 2003 levels, saying, “We haven’t seen the bottom yet.”

View No. 3 is that of Buddy West of the The West Team at Emory Hill Residential Real Estate. “If you’re still waiting for the bottom, he says, “you’ve missed it.”

It was the domino effect of easy financing enabling buyers to pay more than market value a few years ago, which drove up appraisals until the mortgage crisis and stock market crash caused real estate sales to free fall. Job losses—locally caused by the loss of big employers like MBNA America, Chrysler and GM, and layoffs at AstraZeneca—meant record foreclosure rates, creating a huge inventory of housing. With lenders making it harder to qualify for mortgages, that inventory has been slow to move, despite the record-low finance rates.

“I have two analogies,” says West. “The market is like a bathtub. The drain is open, so water is running out, but the spigot is open, too. So while houses sell, new ones are coming on the market as owners continue to default. The absorption rate isn’t changing.”

Analogy No. 2: “The 3.8 percent mortgage rate is the lowest ever,” West says, “but trying to buy is like going to the butcher who advertises filet mignon for 10 cents a pound. Then you go to him and say, “I’d like some of that filet,” he tells you, ‘We don’t have any.’”

That said, West’s group saw an increase in closed deals in December, thanks to increased consumer confidence. Pettit also reports a turnaround. Buyers are so upbeat, in fact, Eddie Riggin of The Riggin Group in Newark has had multiple offers on several well-priced properties. In 2011, sales for his office were up 36 percent from 2010. What’s more, the inventory of homes in New Castle County decreased from 3,700 in June to 2,800 by year’s end— a big drop.

And that’s good news for sellers. Further reductions in inventory mean positive effects on prices for sellers. (A five- to six-month inventory keeps prices stable. A smaller inventory means prices will rise.) Riggin points out that 28 percent more homes sold in 2011 than during 2010 in New Castle County. That’s well above the national figure of 18.6 percent for the same period. Another 20 percent increase is predicted for the nation in 2012.

Though West cautions that sellers have to be realistic about pricing—5 percent below market is “effective,” he says—there are people who want to buy. Those who qualify have never had such favorable conditions. Especially at the beach. “There are some really good deals,” says Jeffrey Fowler of The Jeffrey Fowler Group. Homes that were selling in the $500,000 range are going in the mid-threes.

A buyers’ market eventually translates to a sellers’ market as inventory dwindles.  “It’s not all about the money,” Pettit says. Buying real estate is a good thing to do, but there are better investment vehicles. So when buying your home, don’t think of it as an investment. Think of it as the place where you’ll be happy to live for years to come. 

—Mark Nardone

 

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January 2017

January 3 - 28  “Winter Group Show” Rotating Group Show features a variety of art in different styles and media. Custom Framing & Gift Certificates are always available. Gallery Hours:...

Cost: free

Where:
The Station Gallery
3922 Kennett Pike
Greenville, DE  19807
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Telephone: 302-654-8638
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Sports Card & Collectible Show at Aetna Fire Hall on Jan. 22—sign up now! -Sports Cards McFarlane Figures Comic Books Non-Sports cards Wrestling Items Vintage Starting...

Cost: $2

Where:
Aetna Fire Hall
400 Ogletown Road
Newark, DE  19711
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Sponsor: A2Z Promotions
Telephone: 302-983-2636
Contact Name: Bob Harper
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The Rehoboth Beach Film Society announces the next play in the exciting series of National Theatre Live screenings. National Theatre Live is a groundbreaking project that presents the best of...

Cost: $18-$20

Where:
Cinema Art Theater
17701 Dartmouth Drive, #2
Lewes, DE  19958
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Sponsor: Rehoboth Beach Film Society
Telephone: 302-645-9095
Contact Name: Jeri Kaplan
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Belly Dance Classes with Zahra Beginner & intermediate classes open to teens and adults Sundays in January starting Jan 8th Beginner: 2:30-3:30 p.m. Intermediate: 1 - 2 p.m (must get...

Cost: $15-$42

Where:
Take the Lead Studio
320 Lantana Drive
Hockessin , DE  19711
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Sponsor: Take the Lead
Contact Name: Zahra
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The Resident Ensemble Players, Delaware’s professional acting company performing at the University of Delaware, presents The Bells by Theresa Rebeck. During the great Yukon gold rush of the...

Cost: $15 - $30

Where:
Thompson Theatre, Roselle Center for the Arts
110 Orchard Rd.
Newark, DE  19716
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Sponsor: Resident Ensemble Players
Telephone: (302) 831-2204
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Ah, typecasting—the baritone is always the bad guy! In Devils, Drunks & Dastardly Dudes, we’ll go on an operatic journey of men behaving badly. We’ll add a tenor to the mix, too… but we...

Cost: $29-$59

Where:
OperaDelaware Studio
4 South Poplar St.
Wilmington, DE  19801
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Sponsor: OperaDelaware
Telephone: 302-442-7809
Contact Name: Mary Wilcosky
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Come give curling a try! At this 2-hour intro-to-curling event we'll provide a basic lesson then coach you through a mini-game.  Whether you just want to cross #curling off your bucket list or...

Cost: $35

Where:
The Pond Ice Arena
101 John Campbell Rd
Newark, DE  19711
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Sponsor: Diamond State Curling Club
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January 3 - 28  “Winter Group Show” Rotating Group Show features a variety of art in different styles and media. Custom Framing & Gift Certificates are always available. Gallery Hours:...

Cost: free

Where:
The Station Gallery
3922 Kennett Pike
Greenville, DE  19807
View map »


Telephone: 302-654-8638
Website »

More information

The Rehoboth Beach Film Society announces the next play in the exciting series of National Theatre Live screenings. National Theatre Live is a groundbreaking project that presents the best of...

Cost: $18-$20

Where:
Cinema Art Theater
17701 Dartmouth Drive, #2
Lewes, DE  19958
View map »


Sponsor: Rehoboth Beach Film Society
Telephone: 302-645-9095
Contact Name: Jeri Kaplan
Website »

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Notbybreadalone Ministries presents Feeding the Hungry Outreach. All are welcome to come and partake of food, fun and fellowship. Those who desire a better way of life through Jesus Christ are...

Cost: Free

Where:
2nd and 3rd Streets
Wilmington, DE  19801


Sponsor: Notbybreadalone Outreach Ministries
Telephone: 442-0440
Contact Name: Ministers Wayne and Stephanie Dumpson
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Guest speakers Patty Dailey-Lewis, executive director of the Beau Biden Foundation, and Delaware Family Court commissioner Loretta Young will discuss how participation in social media can too...

Cost: Free

Where:
Wilmington University - Dover
Building A Auditorium
3282 N DuPont Highway
Dover, DE  19901
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Sponsor: Wilmington University College of Social & Behavioral Sciences
Telephone: 302-295-1164
Contact Name: Dr. Johanna Bishop
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January 3 - 28  “Winter Group Show” Rotating Group Show features a variety of art in different styles and media. Custom Framing & Gift Certificates are always available. Gallery Hours:...

Cost: free

Where:
The Station Gallery
3922 Kennett Pike
Greenville, DE  19807
View map »


Telephone: 302-654-8638
Website »

More information

Tuesdays and Thursdays from 9:30AM-12:00PM Fall session: Thursday, Dec 1st thru Thursday, December 15th Winter session: Tuesday, January 17th thru Thursday, March 30th   Drop in on Nature is...

Cost: see description

Where:
The Annex
501 Chandler Mill Rd
Kennett Square, PA  19348
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Sponsor: The Land Conservancy
Telephone: 610-347-0347 ext.104
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East Coast Garden Center Indoor Farmers Market Nov 8, 2016 - April 11, 2017  11 am- 2 pm 25 vendors Location:  East Coast Garden Center 30366 Cordrey Rd Millsboro, DE 19966 302-945-3489

Cost: frr

Where:
East Coast Garden Center
30366 Cordrey Rd
Millsboro, DE  19966
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Sponsor: East Coast Garden Center
Telephone: 302-945-3489
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East Coast Garden Center Indoor Farmer's Marke 25 vendors

Cost: Free

Where:
East Coast Garden Center
30366 Cordrey Rd
Millsboro, DE  19966
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Telephone: 302-945-3489
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The Rehoboth Beach Film Society announces the next play in the exciting series of National Theatre Live screenings. National Theatre Live is a groundbreaking project that presents the best of...

Cost: $18-$20

Where:
Cinema Art Theater
17701 Dartmouth Drive, #2
Lewes, DE  19958
View map »


Sponsor: Rehoboth Beach Film Society
Telephone: 302-645-9095
Contact Name: Jeri Kaplan
Website »

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A four-week series of ballroom dancing classes taught by teachers from the BlueBallroom. Tuesdays starting Jan. 10. Classes are $30 a lesson for Non-Members. Non-Member slots are limited. For...

Cost: $30

Where:
University and Whist Club
805 N Broom St
Wilmington, DE  19806
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January 3 - 28  “Winter Group Show” Rotating Group Show features a variety of art in different styles and media. Custom Framing & Gift Certificates are always available. Gallery Hours:...

Cost: free

Where:
The Station Gallery
3922 Kennett Pike
Greenville, DE  19807
View map »


Telephone: 302-654-8638
Website »

More information

The Rehoboth Beach Film Society announces the next play in the exciting series of National Theatre Live screenings. National Theatre Live is a groundbreaking project that presents the best of...

Cost: $18-$20

Where:
Cinema Art Theater
17701 Dartmouth Drive, #2
Lewes, DE  19958
View map »


Sponsor: Rehoboth Beach Film Society
Telephone: 302-645-9095
Contact Name: Jeri Kaplan
Website »

More information

Show More...
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January 3 - 28  “Winter Group Show” Rotating Group Show features a variety of art in different styles and media. Custom Framing & Gift Certificates are always available. Gallery Hours:...

Cost: free

Where:
The Station Gallery
3922 Kennett Pike
Greenville, DE  19807
View map »


Telephone: 302-654-8638
Website »

More information

Tuesdays and Thursdays from 9:30AM-12:00PM Fall session: Thursday, Dec 1st thru Thursday, December 15th Winter session: Tuesday, January 17th thru Thursday, March 30th   Drop in on Nature is...

Cost: see description

Where:
The Annex
501 Chandler Mill Rd
Kennett Square, PA  19348
View map »


Sponsor: The Land Conservancy
Telephone: 610-347-0347 ext.104
Website »

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Thursdays from 4:00PM-5:30PM Fall session: December 1st, 8th and 15th Winter session: Starts January 19th, every other Thursday until March 30th This program is based entirely outdoors and is...

Cost: Cost: $30 for TLC members / $40 for non-members

Where:
Bucktoe Creek Preserve
432 Sharp Rd
Avondale, PA  19311
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Sponsor: The Land Conservancy
Telephone: 610-347-0347 ext.104
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MARC BROUSSARD In 2004, Marc Broussard, then a precocious 22-year-old singer/songwriter, released his major-label debut; he called it Carencro, after the Louisiana town where he was born and...

Cost: $22 SRO- $32 SEATED

Where:
World Cafe Live Wilmington
500 N Market St
Wilmington, DE  19801
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Telephone: 215-222-1400
Contact Name: MP Intern
Website »

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The Resident Ensemble Players, Delaware’s professional acting company performing at the University of Delaware, presents The Bells by Theresa Rebeck. During the great Yukon gold rush of the...

Cost: $15 - $30

Where:
Thompson Theatre, Roselle Center for the Arts
110 Orchard Rd.
Newark, DE  19716
View map »


Sponsor: Resident Ensemble Players
Telephone: (302) 831-2204
Website »

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Show More...
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January 3 - 28  “Winter Group Show” Rotating Group Show features a variety of art in different styles and media. Custom Framing & Gift Certificates are always available. Gallery Hours:...

Cost: free

Where:
The Station Gallery
3922 Kennett Pike
Greenville, DE  19807
View map »


Telephone: 302-654-8638
Website »

More information

Tutto Fresco has live entertainment every Friday night from 6:30–9:30 p.m. Call for details. http://tuttofrescode.com/

Where:
Tutto Fresco
514 Philadelphia Pike
Wilmington, DE  19809
View map »

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The Resident Ensemble Players, Delaware’s professional acting company performing at the University of Delaware, presents The Bells by Theresa Rebeck. During the great Yukon gold rush of the...

Cost: $15 - $30

Where:
Thompson Theatre, Roselle Center for the Arts
110 Orchard Rd.
Newark, DE  19716
View map »


Sponsor: Resident Ensemble Players
Telephone: (302) 831-2204
Website »

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Meeting every Friday, Bayhealth Kent General Hospital, 640 s. State Street, Dover, 7:30 pm., Private Dining Room #3 in the basement. For those who have, or think they may have a gambling problem....

Cost: 0.00

Where:
Bayhealth Kent General Hospital
640 S. State Street
Private Dining Room #3
Dover, DE  19901
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Telephone: 800-855-2CALLGA
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Cost: $12-$20

Where:
Wilmington Drama League
10 West Lea Blvd.
Wilmington, DE  19802
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Sponsor: Wilmington Drama League
Telephone: 302-764-3396
Contact Name: Kathy Buterbaugh
Website »

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January 3 - 28  “Winter Group Show” Rotating Group Show features a variety of art in different styles and media. Custom Framing & Gift Certificates are always available. Gallery Hours:...

Cost: free

Where:
The Station Gallery
3922 Kennett Pike
Greenville, DE  19807
View map »


Telephone: 302-654-8638
Website »

More information

January 28 – Saturday – 1 to 4 p.m. Science Saturday – Truss Me, You Won’t Fall! Become an engineer for the day. Design a bridge to hold as much weight as possible....

Cost: Activities are included in regular admission and free for members.

Where:
Hagley Museum
201 Hagley Creek Road
Wilmington, DE  19807
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Sponsor: Hagley Museum
Telephone: (302) 65802400 x 238
Contact Name: Jessica Eisenbrey
Website »

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The Resident Ensemble Players, Delaware’s professional acting company performing at the University of Delaware, presents The Bells by Theresa Rebeck. During the great Yukon gold rush of the...

Cost: $15 - $30

Where:
Thompson Theatre, Roselle Center for the Arts
110 Orchard Rd.
Newark, DE  19716
View map »


Sponsor: Resident Ensemble Players
Telephone: (302) 831-2204
Website »

More information

GRILLED CHEESE AND CRAFT BEER TASTING We have taken two of the best things on earth and paired them together – Grilled Cheese and Craft Beer – and paired them together in unexpected and...

Cost: $40

Where:
World Cafe Live Wilmington
500 N Market St
Wilmington, DE  19801
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Telephone: 215-222-1400
Contact Name: MP Intern
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Saturday, January 28, 2017 at  7:30 pm at St. David’s Episcopal Church, 763 Valley Forge Rd, Wayne, PA 19087 Sunday, January 29, 2017 at 3 pm at Church of the Holy Trinity, Rittenhouse Square...

Cost: Tickets are $25 online, and $30 at the door. Student tickets $10 at the door.

Where:
Church of the Holy Trinity
1904 Walnut St.
Philadelphia, PA  19103
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Sponsor: Lyric Fest
Telephone: 215-438-1702
Contact Name: Jessica Nelson
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Fan favorite, Dick Smith, returns to the Dickinson Theatre Organ Society concert stage on Saturday, Jan. 28, 2017 for a show that is sure to bring the house down! Dick Smith has been a...

Cost: $15 Adults; $10 Students

Where:
John Dickinson High School Auditorium
1801 Milltown Road
Wilmington, DE  19808
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Sponsor: Dickinson Theatre Organ Society
Telephone: 302-995-2603
Contact Name: Bob Dilworth
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The Dickinson Theatre Organ Society presents Dick Smith. For tickets, click here: http://www.dtoskimball.org/events-tickets/ticket-information/ For further information, please call us at...

Where:
, DE

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The Resident Ensemble Players, Delaware’s professional acting company performing at the University of Delaware, presents The Bells by Theresa Rebeck. During the great Yukon gold rush of the...

Cost: $15 - $30

Where:
Thompson Theatre, Roselle Center for the Arts
110 Orchard Rd.
Newark, DE  19716
View map »


Sponsor: Resident Ensemble Players
Telephone: (302) 831-2204
Website »

More information

Cost: $12-$20

Where:
Wilmington Drama League
10 West Lea Blvd.
Wilmington, DE  19802
View map »


Sponsor: Wilmington Drama League
Telephone: 302-764-3396
Contact Name: Kathy Buterbaugh
Website »

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MOTHERSHIP Mothership is the area's premier Led Zeppelin Tribute show. Composed of seasoned, professional musicians Mario Padovani - vocals, keyboards, Frank Ginocchio - drums, Chris Julian -...

Cost: 15

Where:
World Cafe Live Wilmington
500 N Market St
Wilmington, DE  19801
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Telephone: 215-222-1400
Website »

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