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Four Reasons Delaware Rental Housing Will Keep Rising

Nov 21, 2017

Whether you are investigating Delaware rental housing activity because you’re looking for an investment or just a place to rent yourself, it’s important to become informed about the state of play in rental housing as a whole. It’s a picture that has been changing rapidly—one that’s unlikely to slow anytime soon.

Much is being written about the growing popularity of rental housing due to younger buyers who either can’t yet afford (or simply choose to avoid) taking on the commitment that homeownership entails. But that’s not the only factor contributing to what amounts to a nationwide shift in rental housing’s popularity.

This summer’s in-depth study by the Urban Institute presented four points explaining why “renting homes is overtaking the housing market.”

Overtaking” may be an overstatement as it relates to today’s rental housing profile in Delaware, but there can be little doubt that the points are on target for the U.S. as a whole. It’s also inevitable that we can count on similar factors affecting Delaware’s rental housing future.

In brief, here are their findings:

·         Renter profiles are changing. Millennials are not buying their own homes as early as previous generations, and many in the 65+ set are choosing to rent. As expected, new immigrants continue to choose to rent.

·         Supply trails demand. High-end developments continue to monopolize new construction activity, neglecting the larger “more-affordable” sector.

·         Renovations are lagging. Under-repaired rentals have resulted from inattention by investors…but some great ideas are making rehabilitation more cost-effective.

·         Single-family rentals are becoming more popular. Multifamily projects have long been the focus of government programs, but that’s changing as single-family rentals leap in popularity.

 

It’s a cinch that both Delaware tenants and landlords will continue to be affected by the kind of national currents that continue to put pressure on housing costs—and rents. Against that background, the potential for Delaware rental housing candidates should be well worth a hard look where investment goals make it appropriate. I’m here to put my deep market knowledge and experience at your service! Call/Text me Russell Stucki at (302) 228-7871, email me at russellstucki@remax.net, visit more listings at www.beachrealestatemarket.com

Delaware Thanksgiving Turkeys are Descended from…?

Nov 21, 2017

If ever your Delaware Thanksgiving preparations cause you to go online seeking some Thanksgiving-related recipe, it will be hard to resist one of the sites that will probably pop up: the Smithsonian Institute’s “14 Fun Facts About Turkeys.”

There are several new turkey insights among the 14. And when it comes to one assumption about the first Thanksgiving that’s probably shared by most everyone in Delaware, Fun Fact #4 is there to correct the record.

Most of the details of that first Thanksgiving aren’t in question.. The Pilgrims had survived the ordeal of the journey and had bonded with the helpful native Americans. So after the first successful harvest, everybody thought it was time for a joint celebration as a neighborhood kind of thing. The most bounteous crop had been corn (which the Indians had shown them how to grow). Dried corn was on the menu which included venison, clams, pumpkin, squash, etc..

And, of course, turkeys—which are native to the Americas—which would have been brought to the feast by the Indians.

Not!

It is entirely likely that the most noteworthy turkeys to grace the first Thanksgiving table were ones that had been brought by the Pilgrims. From Europe.

If that possibility causes many Delaware heads to do double-takes, it may be because we haven’t given much consideration to the length of time between Christopher Columbus’ voyage and the Pilgrims’ landing at Plymouth Rock.

Between 1492 and 1621, there had been 129 years of discovery, settlement, and back-and-forth between the Americas and Europe. They may not have had jets to speed the trips, but after 129 years, there had been quite a lot of those back-and-forths. That was why it was possible for the first Indian to greet the Pilgrims in English. (Squanto had spent five years in Spain and sailed twice to England). But back to the turkeys:

Yes, the estimable bird is actually native to North America, but the subspecies (Fun Fact #3) that is most successfully domesticated is a variety the Aztecs developed in southern Mexico. The Spaniards brought those turkeys back to Europe, and by the early 1600s, they had become gastronomic hits. My guess is that they probably graced many an English baron’s table. Quoting the Smithsonian, “The Pilgrims then brought several of these domestic turkeys back to North America..”

So the rest is Thanksgiving history. Both the Indians and Pilgrims would have hunted and brought to table the eastern wild turkey—but they don’t taste nearly as good. So it’s probable that the Pilgrims were able to impress their native American guests with some European turkey one-upsmanship.

 

I hope your own Thanksgiving celebrations are equally tasty—and that the year before us is even more bounteous that those that came before. In case Delaware real estate might become a part of it, I’ll be here to help make that happen!  Call/Text me Russell Stucki at (302) 228-7871, email me at russellstucki@remax.net, visit more listings at www.beachrealestatemarket.com

Delaware “Bubble” Question Not Most Relevant

Nov 21, 2017

“Are we in a real estate bubble?” can still be a nagging thought for prospective Delaware home buyers. It turns out that it might not be the most relevant question.

When you buy a home in Delaware, you commit to what is actually a two-pronged proposition. One part is ultra-conservative: its practical utility as shelter. Being master of the roof over your head doesn’t just let you feel like you have a grip on the future—it removes a sizeable chunk of the unknown from your family’s prospects.

It’s that other aspect of owning your Delaware home that can trigger hesitation. When all is said and done, this is also an investment vehicle—perhaps the largest most people will ever acquire. Although this aspect, too, is often considered to be quite conservative, within the past decade there was a time when common wisdom had it that buying homes was such a risky financial gambit that only the bravest (or wealthiest) were tempted to take the plunge.

So—which is it? Is it simply a 50-50 proposition—or is there a straightforward answer to whether buying a home in Delaware is more of a chancy venture than a prudent one?

For the risk-averse, the good news is that history does give us a reliable answer—one that depends on just one qualifier. Owning your home is a high-risk investment only if the frame of reference is short term. Over the long haul, it’s about as conservative as an investment can get.

Here’s why. Last decade’s Great Recession—and the residential real estate bust which accompanied it—were preceded by what was unarguably a full-blown real estate bubble. All the earmarks of a real estate bubble were present, here in Delaware , across the nation, and internationally.

For a buyer who purchased at the height of the bubble, the fall in value was precipitous. From 2007 to mid-2008, the drop in U.S. residential prices was nearly 33%—a plunge not seen since the Great Depression of the 1930s. For a buyer who had purchased at the height of the bubble, selling within a short timeframe could result in a significant loss. In that case, their investment would have been almost as risky as a stock market speculation (the S&P lost 50%).

Yet for homeowners who had no reason to sell, the actual dollar losses never materialized. By this time last year, buyers in most parts of the country were willing to pay prices that exceeded the heights of 2006. Inflation has had an effect—yet current moderate residential price rises have been outstripping inflation in recent years. In fact, last week the Economist found that “across America, prices appear to be at fair value when compared to their long-run averages.”

So the more important question may not be the one about real estate bubbles at all. It’s about whether a prospective home in Delaware  is intended as a short or a long-term purchase. In all cases, I hope you’ll call me to supply my experience and up-to-the-moment market insight. Call/Text me Russell Stucki at (302) 228-7871, email me at russellstucki@remax.net, visit more listings at www.beachrealestatemarket.com