3 Reasons to Buy New Homes In Delaware Before 2014
In the market for a new condo or townhome?
With the holidays sneaking up, looking at new homes in Delaware may be the last task on your mind. “We’ll wait until next year,” you might be saying to yourself. Naturally, you want to be in the best financial position during your house hunt; but if you’re on the fence, keep in mind there is more than one compelling reason to start your search nowand close before 2014.
Mortgage rates on new homes in Delaware are expected to go up
Chief Freddie Mac Economist Frank Nothaft recently predicted that we would see 5% 30-year-fixed mortgage ratesby the middle of 2014. Currently, the 30-year rate is 0.82 percent higher than it was at the beginning of 2013, so there is definitely an upward trajectory. The Fed is expected to scale back their stimulus program in the New Year, which will assuredly lead to a slight rise in rates, meaning that buying a new home in 2014will bemore expensive due to higher interest charges.
New rules could make financing more difficult to get in 2014
There are three new mortgage lending rulesset to be rolled out in 2014. First, buyers will need to provide more documentation to verify their ability to pay back the loans. This means you’ll need to furnish bank statements, pay stubs, tax returns, W2s and letters of explanation to explain away any red flag issues. Secondly, you will be limited to a debt-to-income ratioof no more than 43 percent under the Qualified Mortgage rule. So if your household is balancing a lot of debt, you may have trouble qualifying in 2014. Lastly, you are also likely to see higher finance fees from lenders, as banks and mortgage companies hire more Dodd-Frank compliance staff and pass on their increased operational costs to consumers.
Inventory is shrinking and prices are going up in most markets
The National Association of Realtors announced that October home sales dropped 3.2 percent in response to “shrinking inventory.” At the same time, the median house price rose 12.8 percent over October 2012 prices. If you’re looking at townhomes and condos in Philadelphia, you can expect to pay more for less. Generally speaking, October home prices were at their highest since February 2006, according to the S&P/Case-Shiller Home Price Index.
However, there are still pockets where buyers can find great value for their money. Delaware represents one such market where prices have continued to remain relatively stable in price and inventory. Local realtors say the stable employment market has kept the housing market on an even keel. While homes in New Castle County have seen an 8.4 percent increase in home prices, it is small potatoes compared to the national price hikes that have been in double digits for 11 straight months. One never knows what may happen, but it’s clear that now is a good time to start looking at new homes in Delaware.
New homes in Delaware at Darley Green
At Darley Green in Wilmington, Delaware, you’ll find classic homes along tree-lined streets on 67 acres of wide open space. This master planned communityis close to modern conveniences like restaurants, stores, jogging trails, a new library, movie theaters and nightlife. Yet, it’s far removed from the hustle and bustle of big city life. Best of all… unlike buyers of condos and townhomes in Philadelphia, Delaware residents enjoy:
– No inheritance tax
– No sales tax
– No personal property tax
– No social security benefit tax, and
– Low property taxes.
So rather than wait until 2014, why not have a gorgeous new home for the holidays? Darley Green townhomes and condos are ideal for entertaining, with open concept floorplans and impressive great rooms. We have a number of move-in ready homes that can close in just 30 days. Call 302-655-2600 to set up a free, no-obligation tour.