The one place in the U.S. where people ARE buying more homes and defying national trends is revealed

Despite dismal home sales trends nationally, one U.S. state is defying expectations.

While rates fell across the country last month, sales in Delaware rose year over year for the first time in nearly three years.

Existing home sales for the month of April, excluding new construction, rose 9.78 percent year over year to 1,122, according to data from the Delaware Association of Realtors.

Sales reached a new peak since September 2023 and marked the first time since 2021 that monthly sales were higher year over year.

Delaware also beat regional trends in the South, where sales fell 1.6 percent from March and 3.1 percent from the previous year. The Diamond State is technically classified by the Census Bureau as part of the Southern US, despite being located in the mid-Atlantic Ocean.

“April saw a dynamic housing market in Delaware, with strong increases in both supply and sales,” George Thomasson, president of the Delaware Association of Realtors, said in a news release.

The average sales price in Delaware rose to $387,500, up 4.97 percent from March and up 6.51 percent from April 2023.

By comparison, the housing market in the rest of the country didn’t look as hot.

US sales fell 1.9 percent from March and 1.9 percent from April 2023, according to a report from the National Association of Real Estate Agents.

The average sales price last month was $407,600, up 5.65 percent year over year and up 3.58 percent from a month earlier.

The South lagged somewhat behind these trends, with median home prices rising to $366,200, up 3.7 from 2023.

“The significant increase in active inventory provides buyers with more choices, while rising median prices reflect the continued value of properties in our state,” Thomson said.

“However, we must recognize the ongoing inventory crisis, which continues to pose challenges for both buyers and sellers.”

The housing shortage plaguing the U.S. market is exacerbated by factors such as the lingering effects of the Great Recession and skyrocketing mortgage rates, which reached a more than two-decade high late last year.

The average sales price in Delaware rose to $387,500, up 4.97 percent from a month earlier

The average sales price in Delaware rose to $387,500, up 4.97 percent from March (photo: a home in Magnolia – list price $310,000)

George Thomasson, president of the Delaware Association of Realtors, said rising median prices reflect the “enduring value of real estate” in the state (photo: a house in Millsboro – list price $860,000)

The supply of homes for sale in the country reached a low point in January 2022. Although it has risen since then, analysts say this is not enough to meet demand.

Across the country, the number of homes for sale in April was 1.21 million, up from 1.11 million in March and 1.04 million in April last year. The number of homes for sale in Delaware also increased 27.27 percent year over year.

Buyers in the US appeared to be buying homes faster, with homes spending an average of 26 days on the market, compared to 33 days in March, but not as quickly as buyers in April last year.

In other regional trends, sales in the Northeast fell 4 percent from March to an annual figure of 480,000 – down 4 percent from a year ago. The average house price increased by 8.5 percent year on year.

In the Midwest, sales fell 1 percent from a month ago, to an annual level of 1 million. Sales are down 1 percent from April 2023. However, the average price rose to $303,600, a 6 percent increase from last year.

And in the West, sales fell 2.6 percent from last month, to an annual figure of 760,000 in April. However, interest rates rose 1.3 percent from April 2023. The median home price of $629,600 was also up 9.3 percent year-over-year.

As buyers across the country focus on new-build homes, analysts warn that sales of existing homes, which make up the bulk of the market, have stalled.

However, this tepid demand is fueling the country’s low housing supply, countering the inventory crunch.

Home inventory also saw an increase in the Diamond State as the number of homes for sale in April rose 27.27 percent year over year

Despite mortgage rates rising above 7 percent and home prices continuing to rise last month, some market segments proved resilient.

Home sales in the luxury segment, meaning homes costing $1 million or more, rose 40 percent last month compared to April 2023. Still, all four major regions of the U.S. saw a decline in home sales.

“Home sales are little changed overall, but the upper market is experiencing significant gains as more supply comes into the market,” NAR chief economist Lawrence Yun explained.

On the high-end market, the number of listings increased by 34 percent year-on-year in April.

Despite rising home prices and mortgage rates, hopeful first-time buyers are optimistic about the market in 2024, according to TD Bank’s First-Time Homebuyer Pulse survey.

Nearly three in four Americans planning to buy their first home are confident in the housing market and their personal finances, according to TD Bank’s First-Time Homebuyer Pulse survey.