New Castle County is on pace to drop to 4000 homes sold for 2010. It has been 18 years since sales were as low as 4000 units in NCCo, when units sold were 3548 in 1992.
1993 saw unit sales of 4192, and sales were on a steady increase until 2005 when sales hit their peak at 8284 units. Since then sales have declined, going from 7700 in 2006 to 4974 in 2009.
The big question is where will the market go for 2011? Certainly with a greater population in New Castle County today than we had 18 years ago, one would not expect unit volume to remain at levels from 17-18 years ago. As the economy continues to slowly and steadily improve over the months ahead, we should see increased confidence in the home buying market, and sales volume increase.
When it comes to home prices and value, it will take a much greater reduction in supply before we start to see prices begin to increase again. I would not look for that to happen until sometime in 2012, when the demand has had a chance to bring down the supply of inventory levels for at least a year or so.
To discuss specific market values and strategies either for investment properties or your primary residence, please contact me at 302-999-6966.
John Luca
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