Despite dismal trends in home sales nationwide, one U.S. state is defying the odds.
While rates fell nationwide last month, sales in Delaware rose year over year for the first time in nearly three years.
Existing home sales for the month of April, excluding new construction, rose 9.78 percent to 1,122 year over year, according to data from the Delaware Association of Realtors.
Sales reached a new peak since September 2023 and marked the first time since 2021 that monthly sales were higher year-over-year.
Delaware also beat regional trends in the South, where sales declined 1.6 percent from March and 3.1 percent from a year earlier.
The Diamond State is technically classified as part of the southern US by the Census Bureau, despite being located in the mid-Atlantic region.
While home sales rates fell nationwide in April, sales in Delaware increased year over year for the first time in nearly three years.
“This April showed a vibrant real estate market in Delaware, with an increase in both listings and sales,” George Thomasson, president of the Delaware Association of Realtors, said in a news release.
The median sales price in Delaware rose to $387,500, up 4.97 percent from March and 6.51 percent from April 2023.
In comparison, the housing market in the rest of the country did not seem as attractive.
Sales across the United States fell 1.9 percent from March and 1.9 percent from April 2023, according to a report from the National Association of Realtors.
The median sales price last month was $407,600, an increase of 5.65 percent year over year and a 3.58 percent increase from the previous month.
The South lagged slightly behind these trends, as median home prices rose to $366,200, up 3.7 from 2023.
“The significant increase in active inventory provides buyers with more options, while the increase in median prices reflects the enduring value of properties in our state,” Thomson said.
“However, we must recognize the current inventory crisis, which continues to pose challenges for both buyers and sellers.”
The housing shortage plaguing the U.S. market is being compounded by factors including the lingering effects of the Great Recession as well as skyrocketing mortgage rates, which reached their highest point in more than two decades late last year. .
The median sales price in Delaware rose to $387,500, up 4.97 percent from the previous month.
The median sales price in Delaware rose to $387,500, up 4.97 percent from March (pictured: a home in Magnolia – listing price $310,000)
George Thomasson, president of the Delaware Association of Realtors, said the rise in median prices reflects the “enduring value of property” in the state (pictured: a home in Millsboro – listing price of $860,000).
The supply of homes for sale in the country hit a record low in January 2022. While it has increased since then, analysts say it is not enough to meet demand.
Nationwide, the inventory of homes for sale was 1.21 million in April, up from 1.11 million in March and 1.04 million last April. The number of homes for sale in Delaware also increased 27.27 percent year over year.
Buyers across the United States appeared to be snapping up properties more quickly, with homes on the market for an average of 26 days, down from 33 days in March, but not as fast as buyers last April.
In other regional trends, sales fell 4 percent from March in the Northeast, reaching an annual rate of 480,000, a 4 percent drop from a year earlier. The median home price increased 8.5 percent year over year.
In the Midwest, sales fell 1 percent compared to a month ago, reaching an annual rate of 1 million. Sales were down 1 percent from April 2023. However, the median price increased to $303,600, up 6 percent from last year.
And in the West, sales saw a 2.6 percent decline from last month, reaching an annual rate of 760,000 in April. However, rates increased 1.3 percent from April 2023. The median home price of $629,600 also increased 9.3 percent year over year.
As buyers flock to newly built homes across the country, analysts warn that sales of existing homes, which make up the bulk of the market, have stagnated.
However, this tepid demand is driving the country’s low housing supply, helping to offset the inventory crisis.
Housing inventory also saw an increase in the Diamond State, as the number of homes listed for sale in April increased 27.27 percent year over year.
Even as mortgage rates topped 7 percent and home prices continued to rise last month, some segments of the market proved resilient.
Sales of high-end homes, meaning listings of $1 million or more, rose 40 percent last month compared to April 2023. However, all four major U.S. regions saw a drop in home sales.
“Home sales were little changed overall, but the high-end market is seeing a significant increase due to more supply coming to the market,” NAR Chief Economist Lawrence Yun explained.
The high-end market saw a 34 percent year-on-year increase in April.
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