Home Values in Delaware
The median home value in Delaware is $340,000. Delaware home prices have risen sharply since 2020, particularly in Sussex County near the beaches, up 35%+. Wilmington and New Castle County are more moderately priced.
What Drives Home Values in Delaware?
Several Delaware-specific factors influence home values beyond national trends:
- Property tax burden: At 0.57% (avg. $1,570/year), Delaware's taxes are below average — a buying incentive
- Assessment methodology: Delaware is unique in that property assessments have not been updated in some counties for over 40 years — Sussex County's last reassessment was in 1974.
- Buyer exemptions: The State Property Tax Credit reduces the property tax bill by up to $500 for residents age 65+ who have lived in Delaware for at least 10 years.
- Financing limits: Conforming loan limit is $726,200 — All Delaware counties are at the standard conforming limit.
Closing Cost Consideration
When estimating net proceeds from a home sale, account for closing costs and transfer taxes. Sellers in Delaware typically pay 6-8% of the sale price in total transaction costs. Delaware charges a 4% real estate transfer tax (split between buyer and seller at 2% each), which is among the higher transfer taxes nationally.
Frequently Asked Questions
What is the average home value in Delaware?
The median home value in Delaware is $340,000. Delaware home prices have risen sharply since 2020, particularly in Sussex County near the beaches, up 35%+. Wilmington and New Castle County are more moderately priced.
How do property taxes affect home values in Delaware?
Delaware's effective property tax rate is 0.57%, with an average annual bill of $1,570. This low tax burden is a positive for Delaware home values — lower carrying costs increase buyer demand.
What is the conforming loan limit in Delaware?
The conforming loan limit in Delaware is $726,200. All Delaware counties are at the standard conforming limit. Buyers needing loans above this require jumbo financing.
How much are closing costs when selling a home in Delaware?
Sellers typically pay 6-8% of sale price in total transaction costs. Delaware charges a 4% real estate transfer tax (split between buyer and seller at 2% each), which is among the higher transfer taxes nationally. Buyers pay an additional $2,900 in closing costs.