Sussex County shows double-digit gains in first quarter real estate sales

The Sussex County Association of Realtors released first-quarter sales numbers last week that show a continuously strengthening real estate market in Delaware’s southernmost county. Stronger than even 2012, the data is the latest in a series of reports issued by the county’s real estate trade association.

While positive housing trends in Sussex County had been fueled in past quarters by larger-than-normal inventories, incredible buying opportunities and record low interest rates, strong data early in 2013 seems to be due to an overall strengthening of the broader economy.

“For the past several quarters, we know that our local markets here in Sussex County were being driven by enticing buying opportunities, which were caused by burgeoning inventories,” says Bob McVey, 2013 president of SCAOR. “But what we’re seeing now is shrinking inventories, but strengthening home prices and home sales due to an increased optimism nationwide in regard to the American economy.

“The Federal Reserve keeping interest rates low is obviously helping as well, as buyers can get a great deal on a home today and pay what is still a very low interest rate for it,” McVey said

Single-family home sales for the months of January, February and March rose 63 percent over the same quarter a year ago, with the average three-bedroom home in the county selling for a median price of $227,434. This is the third consecutive year that Sussex County has seen the number of sales trending upward.

A total of 651 homes were sold in Sussex County through the end of March, compared to 411 in 2012. Home values were almost identical for the first three quarters of the current year, compared to the same period a year ago. In total, more than $180 million worth of single-family real estate changed hands during the first three months of 2013.

Also encouraging for local real estate officials is the vastly improving status of the commercial real estate market. A segment of the industry that had been lagging in recent quarters, more than $4 million in commercial real estate was sold between January and March, a 38 percent increase over the same period in 2012.

Partially driven by a robust second homeowner community, the markets in southern Delaware are expected to continue showing strength in future quarters, as the broader American economy continues to improve.

SCAOR is a resource for the public, as well as a recognized advocate for property rights and property owners in Sussex County. The association also monitors legislative issues on the local, state and national levels that may impact home ownership in the area.

To read more about issues related to Sussex County’s real estate industry, go to www.scaor.com.