An Analysis of Delaware's Housing Market

Date
2012-06-21
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Abstract
The housing market in Delaware has undergone dramatic shifts over the past 20 years. As most other states, activity in the market increased sharply in the early part of the last decade and peaked between 2006 and 2007. Rosy speculation, easy credit, and quick profits convinced people that housing was a low risk, high reward investment. As dollars funneled their way into properties, the construction industry experienced an unprecedented boom requiring many jobs. When the bubble burst, the construction sector in Delaware shed thousands of jobs, and many companies went out of business. Actual and perceived wealth dropped seemingly overnight, and banks were left with hundreds of billions of dollars’ worth of toxic assets. It has been nearly five years since the housing market collapsed, and a meaningful recovery has yet to take place. However, recent indicators may be signaling that the market is beginning to turn around. Home prices have fallen, home sales in 2011 are higher than sales in 2010, and the stock of excess housing has had more time to get whittled down.
Description
The Center for Applied Demography & Survey Research conducted a study to analyze the residential construction sector in Delaware. Many different topics are discussed in this study, including the history of the housing market in each county, demographic projections, potential future demand, recent market conditions, and the economic impact of residential construction. This executive summary emphasizes the main results of the study.
Keywords
Real Estate Market, Delaware Association of Realtors, Housing Market
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