New ConstructionScaling Your Portfolio

Delaware Needs More Homes to Keep Up with Demand

Delaware Presents Real Estate Investment Opportunities

Delaware’s real estate market paints a picture similar to other U.S. sellers’ markets.

Between April 2021 and April 2022, Delaware’s housing market saw a:

• 10% decrease in the number of units sold
• 15% decrease in active inventory
• 27% decrease in the number of days on the market (Source: Long & Foster Market Minute)

By May 2022, Delaware home prices had increased 7.4% YOY – bringing them to a median price of $365,000. On average, Delaware homes sold after 33 days on the market, and the total number of homes sold in May increased by 23% YOY.

Median monthly rent is $1,110 – which is slightly higher than the national average of $1,023. Nearly 30% of Delaware’s population rents. The most common type of housing in Delaware (59%) is single-family homes.

No question, Delaware is hot, and it holds a lot of promise for real estate investors, especially in the new construction and build to rent markets.

How Hot is Delaware's Real Estate Market?

Like nearby Richmond, VA and Washington, D.C., Delaware has become an up-and-coming real estate market. Its appeal has been driven by sales price increases of single-family homes.

Data from Realtor.com showed that the median sales price of single-family homes increased in New Castle, Kent, and Sussex counties in April 2022.

New Castle County, DE is Delaware’s largest county, comprised of 32 cities, and also the most affordable. Still, New Castle has seen increases in sale prices.

In April 2021, the median listing price for homes in New Castle County was $280,000, and the median sale price was $286,500. In April 2022, the median listing price jumped to $310,000 – an increase of 11% YOY – while the median sale price jumped to $324,000, according to data from Realtor.com. On average, homes in New Castle County, DE sell after 43 days on the market, which is slow compared to the trends nationwide, but faster overall than in 2021.

Kent County, DE is comprised of 26 cities. Homes in Kent County are slightly more expensive than in New Castle County with a median listing price of $319,000 – a 17% increase YOY – and a median sale price of $360,000.

Data from Realtor.com shows that in April 2022, homes in Kent County sold after 44 days on the market, a week faster than the previous year.

Sussex County, DE, made up of 30 cities, is the state’s most expensive county when it comes to purchasing real estate.

The median listing prices for homes is significantly higher in Sussex County compared to the rest of the state. In April 2022, the median listing price for homes in Sussex County jumped to $485,000 – a 28% increase YOY – with a median sale price of $442,000.

New Construction is in the Driver’s Seat

Delaware’s new construction activity is quickly placing the state among the best places to invest in real estate. For instance, a number of single-family homes, townhomes, and apartment complexes are  currently planned or underway in Sussex County.

In addition to the numerous homes being built across Delaware, several business and retail stores are under construction in the state including Target, Trader Joe’s, and Amazon. This is all great news for real estate investors because it shows potential for the state’s growth.

Considering Purchasing Investment Properties in Delaware?

As you consider purchasing investment property in  the Delaware real estate market, finding the right lender is near the top of priorities. With an unpredictable housing market, it’s crucial to have a private lending partner that focuses on your goals and strategies through the lending process. Lima One is that partner.

If you’re looking for new construction loans to stay competitive in the hot construction market, don’t choose just any of the hard money lenders in Delaware. Let Lima One help. Our experienced lenders help investors find financing for Delaware real estate investors.

Our clients have different investment strategies, so we have designed our loan options to allow us to cater to their individualized needs. Contact us today to discuss your next deal, or if you have a deal in hand, accelerate the process by applying now.