The OG Take on the Market
It's true that while we haven't seen a full-blown recession, there have been significant economic challenges over the past year, including inflation and decreased savings. These factors can impact the real estate market, but the Northern Delaware market has remained active due to high demand and limited inventory.
One way to feed demand is to build new houses. The availability of land in northern New Castle County for new construction is certainly a factor in this market, as there is limited space for new developments. You drive 30 minutes south and you will see mega neighborhoods all over the place. Repurposing existing land can be a solution, but it can also pose challenges such as community resistance and traffic concerns. It's interesting to note that developers in Northern New Castle County have had to compromise by scaling down the size of their projects in order to address these concerns and gain community support. This highlights the importance of balancing development with the needs and desires of the local community. It's also worth noting that repurposing existing land can have environmental benefits, as it can reduce the need to develop greenfield sites and preserve natural habitats.
As for the impact of decreased savings on the market, it's likely that first-time homebuyers are feeling the most strain. They may be unable to save as much due to financial pressures, making it more difficult to enter the market. However, those who do have a destination in place and are able to sell their homes have been taking advantage of the market conditions.
Looking ahead, the market is expected to continue on a similar trajectory through the spring and summer. The number of transactions may slightly decrease and days on the market may slightly increase, but pricing is expected to remain strong. Additionally, it is unlikely that a potential recession later in the year will significantly impact the housing market as long as demand continues to outpace inventory levels.
as of 4/26/23