With over 50% of the state’s total population living in or around Wilmington, the local market is a barometer for Delaware’s real estate market as a whole. On that note, Wilmington is facing a backlog of inventory and the real estate market there is projected fall just over 11% in 2009. Proactive measures taken by Delaware’s state government include buying and renovating abandoned properties with stimulus funds, and creating its own foreclosure mediation plan. An extension of the first-time buyer credit would also provide the state with a real shot in the arm. See the following article from Housing Predictor for more on this.
An auto manufacturing company is buying a former General Motors assembly plant in Wilmington to make new hybrid cars with government help. The aid is welcome in Delaware, which has been severely damaged by the financial crisis, but is comparatively holding its own in the housing downturn.
Production of the new vehicles, however, won’t begin until the automotive facility is revamped to produce the new cars. It’s been a tough time for Delaware, where business bankruptcy filings have topped the 2001 recession and foreclosures are on the rise due to growing unemployment.
Efforts are growing in Delaware to fight foreclosures. The Delaware Attorney General, a state legislator and judge created a foreclosure mediation program to help homeowners at risk of foreclosure. Home sales have been given a boost in Wilmington by the federal government’s first time home buyers tax credit. More than half of the state’s residents reside in Wilmington.
However, Wilmington will have to see a large inventory of homes sold off before housing values increase again. Housing Predictor forecasts the rest of 2009 home sales to be sluggish in Wilmington and values to deflate an average of 11.1% for the year.
Local Delaware Housing Markets at a Glance
Rising home sales in Newark are aiding the local economy and may be on the way to stabilizing the market with the help of Congress approval of the first time home buyers tax credit. Foreclosures haven’t been running at epidemic levels in Newark, which has been at least partially insulated from the fallout of the housing crisis. However, an excessive inventory of homes and other properties will have to be absorbed by the market before any solid stabilization develops. Home prices are forecast to dip 11.6% in 2009 on average.
In Dover sales of existing homes are less than impressive as the state’s capitol trudges through the financial crisis and resulting housing downturn. County and state officials are using stimulus money from Washington to purchase and renovate homes that have been left vacant to rot by foreclosure. But more political efforts will need to be made before housing markets return to anything like normal.
Home prices are sliding in Dover as the epidemic of foreclosures increase with lender assisted short sales. Higher job losses will translate to more homeowners at risk of foreclosure in Dover, which is projected to see a rise in delinquencies in 2010. Dover will finish 2009 with average home deflation of 10.6%.
In sleepy Smyrna outside of Dover’s capitol, the housing market was sluggish until the first time home buyers incentive boosted sales, and now that the incentive is being expanded hopes are rising that sales will aid the local economy in recovery. Home prices are forecast to deflate at a rate of 10.8% for 2009.
This article has been republished from Housing Predictor. You can also view this article at Housing Predictor, a real estate analysis and forecasting site.