2022 Real Estate Update
With mortgage rates doubling year over year, affordability challenges, and longer days on the market, 2022 saw a correction to the hot housing market that followed COVID-19. Historically high Federal Reserve rate hikes, attempting to curb inflation, brought higher 30-year rates; however, low supply and increased mobility with work from home trends have allowed some area home prices to plateau, even rising slightly, while others lost some of their gains from the last 2 years. The housing market has unique challenges ahead with decreased demand compared to the last two years.
Bayside was temporarily sold out of new homesites in 2022. North Haven and Harbor’s Edge finished up all home settlements with Bayside welcoming 75 new homes. Site work is wrapping up in both neighborhoods and we are excited that North Haven’s new pool is completed. Site work began in November 2022 for Phase 2 of Coastal Crossing which will consist of 19 single family homes and 10 villas. Site work is currently paused and will begin again in July 2023.
In 2022, Bayside had 48 resale listings and 55 resales. This shows that sales outpaced listings this year. Bayside was below the average days on market for Sussex County which means homes at Bayside were sold faster than the county average. In early January 2023 Bayside had 6 listings on the market.
Tower Hill’s first 12 home settlements took place in 2022 with an average settlement price of $887,705. Site work continues at Tower Hill with site improvements, front landscaping and a brand-new barn displaying Tower Hill’s logo at the entrance to the community.
According to Berkshire Hathaway HomeServices Gallo Realty, 4,173 single family homes sold in Sussex County in 2022, a 17% decrease year over year. The average price of a single-family home was $584,052, an 11% increase year over year and the median price was $470,690, an 18% increase year over year. Average days on market was 36 days at the end of December, calculated as a 3% decrease year over year. Sussex County homes on the market account for less than 3 months of supply at the current sales pace. 938 homes were on the market at the end of December with 50% being new construction. This is a 60% increase in homes on the market YOY. Currently, there are less than 13 months of supply for vacant developed lots.