There Are 4 Types of Housing Markets Right Now. Which One Are You In?
Whether you're eyeing a historic home in New Castle, a townhome in Wilmington or a new build farther south in New Castle County, one thing is true: there isn't a single housing market anymore. Ryan Serhant, CEO of SERHANT, said it best: "There is no longer a housing market . . . There are four Americas."
Here is how the four markets look across the Delaware and Pennsylvania border area, and what each means for you.
1. Cash Buyers: About 1 in 4 Buyers Skip the Mortgage
Nationally, 26% of existing home sales this summer were all-cash, according to the National Association of Realtors. Many are homeowners using equity from a previous sale. Realtor.com data shows cash buyers are concentrated at the very top and bottom of the market by price.
For buyers: Paying cash removes the financing contingency, so your offer looks stronger and may close faster, with more room to negotiate.
For sellers: A cash offer lowers the risk of the deal falling through, but the certainty sometimes comes with a lower price. Compare the whole offer before deciding.
2. Financed Buyers: Rates Aren't Helping, but Sellers Are
Mortgage rates aren't expected to fall soon. Fannie Mae data shows nearly half of experts raised their long-term rate forecast this year. The good news is that Redfin data shows almost half of May sales included a seller concession, like a rate buydown or closing-cost credit.
For buyers: Stop waiting on rates. If the payment works today, negotiate a concession and move forward.
For sellers: Expect to negotiate, and plan for concessions in your pricing strategy from day one.
3. Rate-Locked Homeowners: Most Are Below 5%
About 2 in 3 homeowners have a rate under 5%, according to FHFA data, which makes moving feel expensive. Fannie Mae data shows experts expect the lock-in to last another 3–5 years, so fewer homes will come to market.
For buyers: Sellers who list usually have a real reason to move and tend to be more flexible.
For sellers: Run the math on what your equity can buy before you rule out a move. If you have an FHA or VA loan, ask about making it assumable. It's rare, but it can be a real selling point.
4. Builders: More Negotiable Than You Think
Census data shows builders have about 10 months of unsold new homes at the current pace, well above the normal 4–6 months. That pushes them toward price cuts and rate buydowns. If you're looking at new construction in southern New Castle County or nearby Pennsylvania communities, this could be your moment.
For buyers: This is where the deals are. Use your own agent and compare the full incentive package, not only the sticker price.
For sellers: Compete on what a builder can't offer: mature landscaping, an established neighborhood, and a home that's ready today. In historic New Castle and older Delaware towns, highlight character, walkability and river or downtown access.
The Bottom Line
Four markets are running at once, and the best move in one may be the wrong move in another. Let's figure out which one you're in and build your next move from there.
Ready to talk strategy? Contact Ali Hudler & Hudler Homes of Compass!
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