Delaware Housing Market: Home Prices & Trends

Overview

Supply

Delaware Housing Market Overview

The median home prices in Delaware show a growth of 8.5% YoY as of January 2025. This constant increase in home prices indicates the strength of the housing market. While house prices in Delaware grow continuously, the median value is far below the national average. Currently, the average home price in Delaware is $343,400. Additionally, the number of homes sold increased by 23.8% YoY.

You can also check the market’s competitiveness through the median days on the market. Homes in Delaware now spend only 40 days on the market before going under contract. All these metrics collectively indicate changes in the Delaware housing market’s pace and affordability.

What Does It Mean for Home Buyers and Sellers?

If You're a Buyer: You get less negotiation power as the mortgage rate is around 6.97 to 7%. However, median home prices in Delaware are below the national average, making affordable housing possible in the state. You can buy your dream house if the competition is low and inventory increases.
If You're a Seller: You can profit from your home sale by taking advantage of rising prices and high demand. With prices up 8.5%, sellers have more opportunities to maximize their returns.

Delaware Housing Supply

Delaware's housing supply will grow as new construction and infrastructure expand. Good infrastructure, such as roads and schools, makes an area more desirable and boosts property prices.

Experts anticipate a modest inventory increase in 2025, though high mortgage rates will likely slow home sales. Delaware saw a 13% YoY rise in home listings in January 2025, continuing a consistent upward trend for the past 13 months. With only 2 months of supply, the market is currently leaning toward sellers. A lower supply indicates a seller’s market, while a higher supply favors buyers.

What Does It Mean for Home Buyers and Sellers?

If You're a Buyer: Delaware's low median home sale price has made the market competitive. However, with inventory on the rise, there are still opportunities to find your dream home. Remember that higher interest rates may limit your buying power.

If You're a Seller: Growing home prices in Delaware and just 2 months of inventory make the Diamond State a seller’s market. You must act fast and sell your home before more supply hits the Delaware real estate market. Rising inventory could lower demand and lead to fewer offers from buyers. To attract buyers, focus on staging and marketing your home.

Delaware Housing Demand

The percentage of homes selling above the list price is a key indicator of housing demand. When more homes sell for more than the list price, it shows strong buyer competition and high demand. A decline suggests more supply. Tracking this trend helps you gauge market competitiveness.

In January 2025, almost equal numbers of homes were sold above and below the list price: 27% sold above the list price, and 28% sold below the list price. However, the 99% sale-to-list price ratio suggests more price flexibility for sellers.

What Does It Mean for Home Buyers and Sellers?

If You're a Buyer: You have a few opportunities in the current Delaware housing market. Nearly 28% of homes have price drops, giving you a chance to negotiate. You can also find affordable condos with a median price of just $209K. However, with a tight inventory, you must act fast to secure your dream home.

If You're a Seller: With the 8.5% increase in home prices, a 99% sale-to-list price ratio, and limited supply, the negotiation power lies with sellers. During summer, you will experience high demand and more bidding wars for your Delaware property, reducing the state's average DOM.

Is it a Buyer’s or Seller’s Market in Delaware?

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Buyer

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Balanced

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Buyer’s Market

Seller’s Market

Seller: Housing demand exceeds supply and drives the prices up. Homes sell fast and get multiple offers from buyers.

Is it a Buyer’s or Seller’s Market in Delaware?

As of January 2025, home sellers in Delaware have an edge due to rising prices and limited inventory. However, buyers still have opportunities, as condo prices remain affordable and well below the national average. While Delaware's affordable homes make it an attractive market, the limited supply means higher competition.

The current mortgage rate is almost 7%, reducing buying power in the Delaware real estate market. Additionally, the construction of new homes will provide options to attract home buyers in Delaware. Buyers will also need to budget for monthly fees and HOA, which is expected to grow. These trends vary significantly within Delaware's diverse markets, and you should check your local real estate trends before deciding to invest.

Delaware Housing Market Insights

The housing market in Delaware is highly competitive compared to the nationwide market. Though Delaware property prices are rising at a faster rate, the median home price ($343,400) is still less than the national median price of $418,489. The Delaware housing inventory trend indicates that available homes for sale are growing but slowly.

The local housing markets of metros show varied trends. Pine Creek City has high real estate competition. Home prices have grown 15% YoY, and the current prices ($417k) equal the national average. On the other hand, the Newark real estate market offers affordable housing with a median value of $285k.

Overall, DE’s housing market favors home sellers. If you’re buying a house in Delaware, you can choose affordable condos, as the median home values are only about $209k. You can also wait till the mortgage rates subside a little.

Nationwide Migration Trends

Delaware's population increased by 1.49% from July 2023 to July 2024, ranking it 8th among the states with the highest percentage growth. The U.S. Census Bureau reported that the state gained 39k people from other states. The new residents primarily came from Pennsylvania, Florida, Maryland, and New Jersey. This heavy inflow of migrants makes Delaware one of the most popular states for movers.

There is a trend to retire in Delaware, and affordable housing attracts people. This migration pattern reflects the broader differences in the cost of housing. Delaware's housing and utilities cost is 2% lower than the national average.

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Frequently Asked Questions

How have house prices in Delaware changed over the past year?

Home sale prices in Delaware have grown over the last 14 months, driven by high demand and low inventory. The prices have increased at an average growth rate of 8.5%, with multiple regions seeing considerable double-digit percentage growth. You can check your home’s fair market value with a free home value estimator and decide its price range.

How is the housing market right now in Delaware?

Delaware’s housing market shows a growing trajectory for house prices and inventory. Home sales may remain low if mortgage rates remain around 7%. Local markets like Elsmere (23%) and Brookside (14%) saw significant price gains and are among Delaware's hottest real estate markets. Our experts forecast continued growth in housing demand in 2025, which will keep prices up.

What’s the average home price in Delaware?

The average home price varies depending on house types, size, and local market conditions. It typically ranges from $209k for condos to $374k for single-family homes. For a more accurate estimate, consider the home price index in Houzeo's Delaware housing market overview.

How is the housing market in Delaware in 2025?

Delaware real estate market predictions for 2025 expect the inventory to be low and mortgage rates to be high. Higher price growth and rising mortgage rates will make it hard to find affordable housing. Still, the demand and supply for homes may increase if the net inflow is high and zoning laws are flexible.

Is this a good time to buy a home or sell a home in Delaware?

You must check the real estate trends in Delaware regarding housing prices and inventory. Sellers can benefit from high demand and rising prices. However, the best time to buy a house in Delaware is when mortgage rates are stable, and there is plenty of housing inventory.

What are the cheapest places to buy a home in Delaware?

Harrington offers affordable living, with housing costs 35.6% below the national average and a median home value of $310,000. New Castle is also budget-friendly, with housing costs 23% lower than the national average. To find the cheapest places to live in Delaware, consider comparing housing costs and median household incomes across different areas.

What’s the best place to buy a house in Delaware?

Delaware attracts everyone, from retirees to young professionals. New Castle's welcoming community and Magnolia’s thriving job market in education and healthcare are top attractions. To select the best place to live in Delaware, consider factors like community well-being score, median household income, and unemployment.

How can I list my home for sale in Delaware?

You can list your home for sale with a Flat Fee MLS Delaware listing service. High-tech MLS listing sites like Houzeo automatically assign the right MLS paperwork based on your location. 🚀

What is the average mortgage rate for buyers in Delaware?

The average mortgage rate for buyers in the DE housing market fluctuates between 6.90% to 7%. It depends on the market and the borrower's credit score. Always check current rates with lenders.

What is the cost of living in Delaware?

The cost of living in Delaware is 4% higher than the national average. Housing cost is 2% higher than the national average. Necessities such as food, clothing, and groceries are 2% higher than the national average. You can check your local region’s cost of living using a free cost of living calculator in Delaware.