Georgetown Real Estate Law Blog

House hunters in Delaware may benefit from adequate preparation before starting their searches. Doing so may ensure that they find a home that fits their needs as well as a loan that fits their budget. The first step in the process should be to do a credit review, and individuals can get a free copy of their credit report once a year.

Another important step is to create a list of things that a home must have. For example, a dream home might have three bedrooms or be located in a certain school district. While the real-life property may not have everything a buyer wants, it should have two or three of those characteristics. Prior to making an offer, a prospective buyer should understand the type of paperwork that he or she may need to sign. This will make it easier to develop an agreement that is in their best interests.

In most years, homes in Delaware tend to move slowly during the month of December. However, in 2018, that may not necessarily be the case. This is because many buyers are wary that interest rates are going to continue climbing throughout 2019. Currently, interest rates are just below 5 percent. As a lack of inventory has caused housing prices to increase rapidly, interest rate increases may result in significantly higher mortgage payments.

Price appreciation has caused some to be priced out of the market, and both new and existing home sales have started to slow. One potential silver lining is that with fewer buyers on the market, prices are starting to flatten out or at least not appreciate as quickly. Buyers may also benefit because prices may be lower in the winter compared to the summer in most years.

Increasing home prices have allowed current homeowners in Delaware and throughout the country to accumulate new wealth. However, for those who were looking to buy their first homes, the rapid appreciation was pricing them out of the market. Recently, increasing mortgage rates have played a key role in making homes more affordable. As market conditions cool, buyers have been able to avoid bidding wars or ask that sellers pay closing costs.

Throughout 2018, both new and existing home sales have been less robust than in previous years. While the economy is still strong, this lull could provide opportunities for buyers that hadn't existed in the past. Although mortgage rates are now topping 5 percent in some cases, they are still low by historical standards. During the second half of 2017, interest rates were about a percentage point lower.

With the population aging in Delaware, the Milford City Council approved a nursing and rehab center proposed by Nationwide Healthcare Services. The center would anchor a wellness village that would lease spaces to multiple tenants like a child daycare center, pharmacy, medical offices and possibly a venue for public meetings. The company needed a zoning change to build on land previously occupied by Bayhealth Medical Center. That city had originally zoned that land for only the hospital.

The new zoning applies to roughly 22 acres formerly used by the hospital that relocated. Nationwide will proceed immediately with the development of 12 acres. Representatives from the company continue to meet with a committee of residents to determine the future of the remaining 10 acres. A news release from Milford stated that the updated zoning for the wellness village project also addressed surrounding parcels. The city consolidated the zoning for the whole area and now allows flexible uses.