All Real estate is Local Market Trends 2012

Delaware’s diversity  According to the United States Census Bureau, as of 2005 Sussex County’s population was 78.3 percent white, 13.7 percent African-American, 0.8 percent Asian, and 5.8 percent Hispanic. This classifies the county, according to the bureau, as having a high amount of racial and ethnic diversity, with 20.3 percent minorities

Delaware’s affordable  While there are many great reasons to live and work – or retire – in Sussex County, there’s no secret that one of the major advantages to living in southern Delaware is the taxes. More specifically, it’s the near lack thereof.

Taxes  According to the 2005 American Community Survey from the U.S. Census Bureau, Delaware ranks as one of the top 11 states in the country in terms of property tax liability, with state residents paying an average of just $806 annually. And Sussex County, where values have not been assessed in 35 years, is a far better value. The county government’s portion of the property tax for a single-family home averages only about $100 a year.

REASONS FOR DELAWARE:  Neighboring Maryland has the 13th highest property taxes in the country, according to the survey, with residents paying an average of $2,159 annually. Pennsylvania is directly behind, in 14th position, with residents paying an average annual property tax of $1,937.

Neighboring States  New Jersey has the highest property taxes in the nation – in fact, it’s not even all that close. As of 2005, New Jersey residents paid an average of $5,352 annually in property taxes, more than $1,400 more than New Hampshire, which was ranked second.  In addition to the low property taxes, Delaware is also one of only five states that charges no sales tax: Alaska, Montana, New Hampshire and Oregon are the others

REASONS FOR RELOCATION  There is also no personal property tax in Delaware, as with several states in the region.  Relocating to Delaware is often a financial choice, and a very sound one at that. Hard- earned dollars can be stretched farther.  The county’s tax structure allows resident to mark more of their money as discretionary, used for what they want to do.

Summary of Why Delaware  Proximity to major cities including Washington, D.C., Philadelphia, PA, and New York City.  Close to family for retirees  “Quality of Life”

GOOD NEWS FOR DELAWARE REAL ESTATE  Reversed the Affordability Gap  In May of 2007 Sussex County REALTORS® commissioned an independent survey the results  “ 75% said there is a housing affordability crisis caused by a lack of homes available to meet the demand at certain price levels”

Local challenges  Lending  Regulations?  Appraisals  Loan Modifications

National Association of REALTORS®  Quarterly “Housing Affordability Index” rose to a record high of in first quarter based on relationship between median home price, median family income, and average mortgage interest rate. The higher the index, the greater the household purchasing power. This is the first time the quarterly index broke the 200 mark since recordkeeping began in 1970.

Market Review  2005 total home sales in Sussex County was $1,853,127,035  Median home price was $289,000  2007 total home sales in Sussex County was $1,324,295,791  Median home price was $292,000

Current sales  2011 total home sales was $797,058,260  Median home sale price was $225,000  Year to Date 2012 sales is $725,758,619  Median home sale price is $220,000  Anticipate 3% decline in sale price but potential to exceed total sales

What’s selling?  Sussex County, Delaware remains a hot area with Coastal Sussex leading the sales recovery in Delaware. The sales of single family homes, condo and townhomes, and lots and land suggest buyer confidence has returned.

Good News  Housing affordability is greatly improved. Programs such as NSP, Foreclosure Prevention, and Employer Assisted Housing are making a difference. “ A first time homebuyer’s story: “ In June, I was paying $900 to rent an old house that was not insulated. Today, I own my 6 year old home and pay $500 a month on my mortgage. I can walk two blocks to work and I am saving on utilities. “

Current Snapshot  As of September 30, 2012  2481 homes sold in Sussex County  $698,399,747 in sales with an average sell price of $281,499  Two bedroom home: $161,905 average  Three bedroom home: $234,198 average  Four bedroom home: $457,047

Ah…location…location  Coastal Sussex  Rehoboth average sale is $728,000 median is $599,500  Seaford, Delaware  Average sale is $163,802  Median is $145,900

Inventory is shrinking Rate of sales are increasing. GOOD NEWS since these are strong indicators that our market has recovered and it stabilizing. This will increase buyer confidence.

NATIONALLY The median price of a new home rose a record breaking 11.2 percent in August, reaching $256,000. That marks the highest level since March Census Bureau reported, September 26.

New Homes  The prices of new homes in August soared 17% compared to the same time last year.  The number of new homes that sold in higher prices ranges- $400,000 or more- rose significantly in August.

“This reflects the fact that people who are able to buy homes right now are those in higher-income ranges who have cash and equity on hand, while first-time homebuyers are having a tougher time getting qualified for a mortgage,”- David Crowe, The National Association of Home Builders’ chief economist

More Housing Reports  The Federal Housing Finance Agency reported that U.S. home prices increased 3.7 percent from a year ago in the 12- month period ending in July.  FHFA’s home price index is now about the same level it was in June However, it’s 16.4 percent below the peak reached in April 2007.

Good news continues  S&P Case-Shiller released a report also showing home prices on the rise for the fourth consecutive month and a their highest level in nearly two years.

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