One of the most common questions we get at this time of year is, “What’s going on in the market?” It’s not just potential buyers and sellers who are curious; homeowners always want reassurance their home’s value is going up. The good news is the American real estate market is strong and healthy: home values are up, prices and sales are strong, and millennial first-time buyers are eager to become homeowners.

We often use national real estate numbers to give us a clearer view of our local market. However, real estate is local, and while statistics and predictions help us understand the overall real estate market, our local market may be different. If you’re thinking of buying or selling, or just want to know how much your home is worth, give us a call!

Real Estate 2017What to Expect in the Real Estate Market in 2017

The American housing market is stronger than ever! Home values, prices and sales had their strongest numbers in 2016, a sure sign the market is healthy and strong. According to the Home Price Index from the Federal Housing Finance Agency (FHFA), property values have increased in 58 of the last 62 months and have increased more than 35 percent nationally. Homeowners continue to build equity in their largest investment—their homes.

First-time buyers are back

Housing forecasts from the National Association of REALTORS (NAR), the Mortgage Bankers’ Association, Freddie Mac and Fannie Mae all predict existing-home sales will surpass 6 million in 2017, higher than anticipated sales for 2016. Who’s driving the surge? According to NAR, millennials who have put off buying a home are ready to buy. While they may have avoided buying a home due to student debt and limited employment, many are entering their 30s, a time when their attention turns to marriage, family and setting roots with home ownership. They’re predicted to be the driving force behind home and condominium sales from now until into 2020. (Source: MarketWatch)

What does this mean to you? If you’re a millennial who’s been on the fence about buying, now is the time to act. Give us a call to answer your questions about the market and the buying process.

Renters are embracing home ownership

Additionally, many renters who’ve resisted buying are starting home searches due to the economic weight of rising rents. This year’s home buyers seek to take advantage of comparatively low interest rates and, in most cases, static payments each month—an advantage of home ownership. Rental costs will only continue to rise; if you’re thinking of buying, now is an ideal time to do so.

What does this mean to you? Every month you pay rent, you lose the opportunity to build equity in a home of your own. Break free from the limits of renting and invest in your financial future. Come in the office and we’ll discuss your options.

Home prices are on the rise

According to NAR, the median existing-home price not only increased 6.0 percent year-over-year in October, it’s also the 56th consecutive month of year-over-year increases. Prices are approaching the pre-recession peak.

What does this mean to you? Home prices, and subsequently home values, are increasing. If you’ve been waiting to list your home until you know you can sell it for what you think it’s worth, now is a great time to do so. We’ll be happy to give you a comparative market assessment of your home and help you get your home in list-ready shape.

If you’re in the market to buy, be prepared to act

Homes were on the market for the shortest amount of time recorded since 2009: 52 days. The increase of qualified buyers in the market along with the increasing efficiency of the real estate process means homes are selling faster than ever, and in many cases buyers are engaging in bidding wars and paying over the list price to get the home of their dreams.

What does this mean to you? The home you have your eye on one day may be gone the next. In competitive markets, be prepared to come to the table with a competitive bid.

Looking for a new home?

New-home construction will increase to an average of 1.5 million per year to 2024, according to a report from NAR. However, experts anticipate housing starts will only increase to 1.22 million in 2017, which is less than the 1.5 million new homes required to keep up with growing demand. This inventory shortage of new entry-level homes—typically purchased by first-time buyers—may drive up prices in some areas. Home builders have been focusing on multi-family construction for the last few years, but this type of construction has begun to level off providing hope that builders will once again focus on single-family home construction. However, stricter proposed immigration policies may impact new home construction and tighten inventory.

What does this mean to you? First-time and repeat home buyers agree—there are plenty of advantages of buying a new home. Whether you want a home customized to your family’s needs or you don’t want to bother with age-related maintenance, a new home has much to offer. Give us a call to discuss your options.

Affordability pressures are increasing in many markets

Housing affordability in many of the nation’s largest cities has declined over the past few years, a trend that is expected to continue in 2017. However, there is hope. NAR created the Affordability Index to measure the affordability of homes across the United States. The Affordability Index assesses whether the typical family earning the median family income can qualify for a mortgage on a typical home based on the prevailing mortgage interest rate on loans closed on existing homes from the Federal Housing Finance Board.

The NAR Affordability Index is 170.2 (composite) and 169.8 (fixed), meaning a family earning the median family income has 170.2 percent of the income necessary to buy a median-priced, single-family home. Nationally, the qualifying income is $41,616, but it varies by region. In the Northeast, the qualifying income is $45,024, the Midwest, it’s $32,640, the South, it’s $36,960, and in the West, it’s $61,824.

What does this mean to you? If you’ve had your eye on a new home, but weren’t sure if you could afford it, you may be pleasantly surprised. We may have homes in our area that meet your needs and budget. Give us a call today to discuss your home search.

3 Things to Do Now if You Plan to Buy This Year

  1. Get pre-approved for a mortgage. If you’re like most buyers who plan to finance part of the home purchase, getting pre-approved for a mortgage will allow you to put in an offer on a home and may give you an advantage over other buyers. The added bonus: you can see how much home you can afford and budget accordingly.
  2. Start looking. While most buyers start their searches online, be sure to look at homes in neighborhoods you’d like to live in as well. Keep a notebook to write down what you like and dislike about each home you view in person or online. This will help you narrow down where to look and what to look for in your next home.
  3. Come to our office. The buying process can be tricky. We’d love to guide you through it. We can help you find a home that fits your needs and budget. Give us a call to make an appointment today!

3 Things to Do Now if You Plan to Sell This Year

  1. Make repairs. Most buyers want a home they can move into right away, without having to make extensive repairs. While the repairs may or may not add value, making them will give your home a competitive advantage over other similar homes on the market.
  2. Get a Comparative Market Analysis (CMA). A CMA not only gives you the current market value of your home, it’ll also show how your home compares to others in the area. This will help us price your home to sell in our market. Call us for your free CMA!
  3. Start packing. Help your buyers see themselves in your home by packing up items you don’t use regularly and storing them in an attic or a storage space. This will make your home easier to stage as well as make it easier to move later on.

Are you thinking of buying or selling?

Whether you’d like to buy or sell a home this year, want to know how much your home is worth, or have general questions about our local market, give us a call at 302-542-5534. We’d love to discuss the market with you.

 


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Originally settled by the Dutch in 1631, Lewes continues to be one of the best places to live in Delaware. Over the years, Lewes is a place where home buyers can find exclusive luxury homes and expertly restored historical residences.

For those select few home buyers whose pocket books match their taste, Lewes has plenty to offer. If you see a home on this page that you may wish to tour, The Rehoboth Beachteam of Ocean Atlantic will be happy to schedule an appointment for you.

31142_kaplans_d8qgii

31142 Kaplan’s Cove

Listed at $2,300,000

Private Oasis on Red Mill Pond.  Perfect for extended family living&those with a passion for water sports.  Custom features abound from the 24 karat gold detail on the custom forged security entry gate to the Infinity Edge Pool with waterfall overlooking the man made beach.  Lower level with second kitchen, a bedroom, and bathroom.  Learn more about this home.

218 W CAPE SHORES DR

218 W Cape Shores Drive

Listed at $2,295,000

BAYFRONT DREAMING Wake up to the Delaware Bay at your back door! 4BR, 4.5BA home delivers bay views from most rooms, a gourmet kitchen, great room, large screened porch, multiple decks and balconies, and VIEWS! Plant your feet in the sand, right out your door. Awesome Community Amenities!  Learn more about this home.

 34822 BOATHOUSE LN

34822 Boathouse Lane

Listed at $2,100,000

One of a kind waterfront estate on Rehoboth Bay. 5 bedroom contemporary home, pool, 7 boat slips, caretaker’s cottage on 9.98 acres. Surrounded by 198 acres of state land. Tranquil setting, known as Turner Point.  Learn more about this home.

16938 BLACK MARLIN CIRCLE

16938 Black Marlin Circle

Listed at $1,999,000

MAGNIFICENCE BY DESIGN Striking property completes your wish list with the finest appointments and attention to structural detail. Sophistication and style meet in this 8,000 sq ft, home in a flawless landscape close to the Atlantic Ocean, Delaware Bay, wooded trails, and Historic Lewes. Learn more about this home.

1108 BAY AVENUE

1108 Bay Avenue

Listed at $1,950,000

MODERN LUXURY MEETS BAYFRONT CLASSIC Sprawling, panoramic views from multiple decks and screened porch. Bask in the sun or enjoy sleek interior living spaces, including 5BR, 5.5BA, and entertainer�s kitchen. Step out your door to quiet Lewes Beach, walk/bike to Downtown Historic Lewes! Learn more about this home.

 
115 SAVANNAH ROAD

115 Savannah Road

Listed at $1,899,000

UNPARALLELED IN LEWES Award-winning architectural tour-de-force in Downtown Lewes! Artfully renovated Victorian is commercial/residential masterpiece. Live above it all with penthouse suite luxury to include 3 suites, stunning kitchen and living space, fabulous rear deck with true Victorian style. Learn more about this home.

 640 PILOTTOWN RD

640 Pilottown Road

Listed at $1,849,000

SPECTACULAR WATERFRONT PROPERTY. This 5BR, 3 full BA, 2 1/2 BA home has so much to offer, including: multiple balconies, roof top deck, enclosed font porch, gourmet kitchen, luxury master suite, boathouse/storage shed, full basement, 3 car detached garage w/ apartment above, pool, dock & much more.  Learn more about this home.

550 PILOTTOWN ROAD

550 Pilottown Road

Listed at $1,599,000

AMAZING WATERFRONT HOME! Includes 10yr boat slip lease & 1st right refusal for sep sale of boathouse w/BA & 6 boat slips! This 6BR, 4 full BA, 2 1/2 BA home offers Apartment w sep entrance! 2 wood burning fireplaces 1 w Cape Lighthouse Stone mantel! Full basement, office, owner financing available at 3-4%.  Learn more about this home.

8 lewes ave

8 Lewes Avenue

Listed at $1,595,000

COASTAL LIVING MASTERPIECE Designed for entertaining with ease. Breathtaking details to include 6BR â 5 en suites, gourmet kitchen with granite, 6-burner stove, built-in espresso/coffee maker, wine fridge, double oven, and more. Take in Delaware Bay views from your rooftop deck or wraparound porch. Learn more about this home.

16280 GILLS NECK RD

16280 Gills Neck Road

Listed at $1,549,000

A very rare opportunity, 4 acres East of Route One on Gills Neck Road. All brick home, 4br, 3ba, partially finished basement, wood burning fireplace, 2-car garage, sewer and well. Detached 2-car garage with 2br, 1.5ba guest house. Also, 2000sf pole building with heat with large garage door. Learn more about this home.


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