real estate ‘s economic contribution in delaware

Real Estate ‘s Economic Contribution in Delaware

The Real Estate Industry accounted for $8,953 million or 13.0% of the

Gross State Product in 2012

Bureau of Economic Analysis; NAR

Economic Contributions are derived from:

Home constructionReal estate brokerage

Mortgage lendingTitle insurance & Attorney fees

Rental & LeasingHome appraisal

Moving truck serviceInspections

When a Home is Sold in Delaware

Income Generated from real estate related industries is:

$16,992

Additional expenditure on consumer items such as on furniture, appliances, and remodeling is:

$4,429

Bureau of Economic analysis; Census: NAHB,NAR

When a Home is Sold in Delaware

The multiplier impact is estimated to be:

$10,282

Additional home sales induce additional home production . On the average, one new home is constructed for every 8 existing home sales. 1/8 of new home value is added to

the economy estimated in the State to be:

$23,600

Bureau of Economic Analysis; Macroeconomic Advisors, NAR

Median Price Home:

The Total Economic Impact of A Home Sale in Delaware

$188,800

Total Income Derived from a Sale of a Home:

$55,303

Bureau of Economic Analysis; NAR

$10,000 – $1,000,000 - Short sales $10,000 - $500,000 - Bank owned

Housing Statistics for New Castle & Kent County

September 30 2014

New Castle Kent County

Inventory 2675 1266

Short Sales 284/11% 90/7%

Bank Owned 83/3% 42/3%

Trend

Inventory vs. Appointments New Castle County

0-99,999 12%

100,000- $199,999 30%

200,000- 299,999 26%

300,000 – 500,000 24%

500,000 + 8%

$0-99,999 16%

100,000 -199,999 29%

200,000-299,999 29%

300,000-500,000 21%

500,000+ 5%

Appointments

Inventory

Inventory vs. Appointments Kent County

$0-99,999 24%

100,000 -199,999 40%

200,000-299,999 28%

300,000-500,000 7%

500,000 + 1%

Appointments

0-99,999 10%

100,000-199,999 30%

200,000- 299,999 45%

300,000-500,000 12%

500,000+ 3%

Inventory

Positive outlook on Financing Mortgages

USDA- FHA- Conventional- VA

Loans appear to be available. Low interest rate loans for low to moderate

income familiesWaiver of PMIApproving Higher debt ratios Government assistance for down paymentsRate remains low

Barriers

Low paying jobsLimited number of new businessesStudent loansShortage of inventoryReduction of governmental programs

Homeownership Concerns

Mortgage Insurance Deduction eliminationMortgage Debt Cancellation Relief

Flood Insurance

Homeownership still remains the ultimate American Dream

Improves the quality of lifeHomeownership stabilizes communitiesIncrease individual’s net worthIncreases a sense of security, Improves ones sense of well-being.