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Updated: Q1 Delaware and And Pennsylvania Real Estate Market Stats 2020

Friday, April 24, 2020
by Katina Geralis

The Delaware and Pennsylvania real estate market began 2020 with good momentum. From January through March 2020, a total of 1,400 homes were sold. March posted the highest activity of the quarter with 590 homes sold within the month.

Median home prices climbed on a month-over-month basis, reaching $243,250 during March 2020. "Median" indicates that half of the homes sold for more than this amount, and half of them sold for less.

When we consider the sale prices of all properties sold during the first quarter of 2020, we have an average sold price of $259,867. This is slightly less than the average sold price during the forth quarter of 2019, which was $264,505.

Home inventory grew during the first quarter, with 2,003 new listings arriving on the market. Home buyers were ready and waiting! Properties spent an average of 51 days on market, which is a brisk pace by historical norms. 

There are some variables to keep in mind during the second quarter of 2020. On the positive, mortgage interest rates are cheap, with 30-year fixed-rate mortgages averaging around 3.33% for borrowers with excellent credit. (Source: FreddieMac weekly PMMS survey.) 

Yet the changing economic climate could slow our market activity. Employment uncertainties, a turbulent stock market and stricter mortgage underwriting could reduce the pool of ready buyers. We may see this play out in longer days-on-market, and a leveling off of home price appreciation. 

We have had limited home inventory for some time in Delaware and Pennsylvania, which will help support home prices for a while. Home buyers and home sellers should prepare for changing market conditions, and work closely with their agents to stay informed about sales trends. 

Questions about buying or selling a home? Contact the Kat Geralis Home Team today!

 

Katina Geralis
DE and PA Real Estate Expert
eXp Realty
Homes for Sale
Visit My Website
Contact Me
Find me on Facebook

Delaware and Pennslyvania Home Buying Could Get Tougher

Saturday, April 11, 2020
by Katina Geralis

The spring home buying season isn’t going to be easy for Delaware and Pennsylvania home buyers. A low inventory of homes for sale has been a persistent challenge, and headwinds caused by recent economic news complicates the picture.

Home inventory is showing signs of further contraction. Some home sellers have decided to wait out the social distancing periods out of an abundance of caution.

Meanwhile, lower mortgage interest rates have spurred a record wave of refinance activity, signaling that a number of homeowners intend to stay put.

The newest challenge facing home buyers is the tightening of credit requirements by mortgage lenders. Many lenders have become skittish in recent weeks as business disruptions have cascaded into job layoffs. In an effort to reduce the odds of future loan defaults, some lenders have adjusted mortgage qualifying criteria in these areas:

  • Frequent checking of employment and income
  • Higher credit score requirements
  • Higher down payment amounts
  • Leaner debt-to-income ratios – the fewer debt obligations, the better

Overall, the bar has been raised, but the loan spigot hasn’t been shut off completely. Buyers who face the most red tape include the self-employed and those seeking a jumbo mortgage, who may face steeper requirements.

On the bright side, super-low mortgage interest rates are likely to be with us for some time. Low rates mean more home buying power for the money! Buyers may also want to think about applying tax refunds and economic stimulus funds to their down payment savings. 

We will be happy to refer you to local, trustworthy lenders who can help you prepare for your mortgage application. Contact us today!

Katina Geralis
DE and PA Real Estate Expert
eXp Realty
Homes for Sale
Visit My Website
Contact Me
Find me on Facebook

 

 

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