Delaware Real Estate Market Update: Home Prices Continue to Rise, but Growth Is Cooling

1. Current Home Prices and Trends

• Statewide median home price: Estimated between $399,000–$420,000. According to Cape Gazette, there was a 6% YoY rise to $399,000 in May 2025. New Castle County listings in June showed a median list price of $399,899.

• Year-over-year gains: January recorded an 8.5% YoY growth, per Houzeo. Prices are still climbing, but the pace is not as steep as during the pandemic-driven boom.

  
  

2. Days on Market Are Trending Higher

• State average: Homes are spending roughly 43–46 days on the market. In May, the average was 43 days, while Fed data shows 46 days.

• New Castle County: Listings averaged 66 days in June, down from 77 days, but still slower than earlier in the spring. While prime listings still sell quickly, the overall pace has slowed, granting buyers a bit more breathing room.

  
  

3. Inventory Is Increasing

• Active listings statewide grew to 4,187 in May—a significant 60% surge over last year.

• New Castle County listings jumped 67% month-over-month to 1,216 homes in June. Rising inventory is easing the scarcity seen in previous years, helping to move the market toward balance.

  
  

4. Mortgage Rates Still Elevated

• 30-year fixed mortgages are hovering in the 6%–7% range, with an average around 6.7–6.9%. Buyers are locked into these higher costs, though rate stability has diminished urgency somewhat.

  
  

5. Market Sentiment: Tilted Toward Sellers, but Buyers Have Options

• Seller’s market: Limited supply and sustained price growth still benefit sellers. Home sale-to-list price ratios hover near 99%, according to Houzeo.

• Buyer opportunity: More inventory and a slower pace create room for negotiation. Homes not in top condition now stay listed longer.

  
  

6. Local Variations: County-Level Differences

• New Castle County: June list price dipped slightly (-1.3% from May), but entry-level inventory surged, especially for 1–3 BR homes.

• Kent & Sussex: March data showed median days on market of approximately 59 and 56 respectively—slower than New Castle at 34 days.

  
  

7. Outlook & Expert Takeaways

• Supply keeps rising, cooling hyper-competitive dynamics, though prices remain historically high.

• Buyers should be pre-approved, prepare for rates near 7%, and focus on homes in good shape for quicker sales.

• Sellers need pricing accuracy, strong staging, and timing—summer remains a prime selling window.

• First-time buyers remain challenged: tight inventory in the $350k–$400k range and high down-payment hurdles.

  
  

8. Understanding the Market Dynamics

The Delaware real estate market is currently experiencing a mix of challenges and opportunities. While home prices are still on the rise, the growth rate is beginning to cool. This shift is significant for both buyers and sellers.

9. Tips for Buyers in Today's Market

If you're considering purchasing a home, here are some tips:

• Get Pre-Approved: This will give you a clear understanding of your budget and strengthen your position when making an offer.

• Be Patient: With more inventory available, you have the luxury of taking your time to find the right home.

• Negotiate: Don't hesitate to negotiate on price or repairs, especially for homes that may need some work.

  
  

10. Advice for Sellers

For those looking to sell:

• Price Accurately: Ensure your home is priced correctly to attract buyers.

• Stage Your Home: A well-staged home can make a significant difference in attracting potential buyers.

• Timing is Key: The summer months are often the best time to sell, so consider listing your home during this peak season.

  
  

📊 Summary Table

Factor	Status
Median Price	$400k ± a few K
Price Growth	+6–8% YoY
Inventory	Up 60% YoY
Days on Market	43–46 days statewide
Mortgage Rates	6.5–7%
Market Balance	Slight edge to sellers
Buyer Leverage	Improving

Final Word

As of July 2025, the Delaware real estate market remains dynamic. Homes are pricier and still in brisk demand, but elevated mortgage rates and rising inventory are softening the market edge. Sellers continue to benefit from strong interest, but buyers now have a little more room to maneuver—especially if they are well-prepared and patient. The summer season remains a prime time to either list or buy, but realistic expectations and solid financing will be key to closing the right deal.

Let me know if you'd like a deeper dive into a specific county—New Castle, Kent, Sussex—or guidance tailored to first-time buyers or sellers!