The Delaware housing market in 2025 continues to capture attention as home prices steadily climb. Average home values now hover above $400,000, with reports showing year-over-year growth across the state. Despite high mortgage rates, strong demand and limited inventory keep the market competitive. Buyers are facing affordability challenges, while sellers still benefit from favorable conditions. Experts predict prices will continue to rise, though at a slower pace than the surge of recent years. For homebuyers, preparation and timing are more important than ever. For sellers, strategic pricing will remain the key to success.

Current Home Prices: A Snapshot

As of mid-2025, Delaware’s average home value sits at approximately $404,612, reflecting a modest 2.3% year-over-year increase. Meanwhile, data from Houzeo reports a slightly lower figure—an average of $343,400—but underscores stronger price growth, showing an 8.5% increase year-over-year as of early 2025. Bankrate presents another view: a median home price of $343,300 in January 2025, marking an 8.6% rise from the previous year.

These variations arise from different methodologies—some sources focus on “average” values across all properties, while others emphasize “median” sale prices based on closed deals. Despite the discrepancy in numbers, all indicate that prices are on an upward trajectory.

Market Momentum: Who’s Winning?

Redfin reports an eye-catching 9.5% year-over-year increase in median sale price as of July 2025, placing the number at $385,800. However, the market is tightly constrained: the number of homes sold has declined by 11.2%, and total inventory is down 26%, with only one month of supply remaining—a clear indicator of a strong seller’s market.

Regional reports align with this outlook. Data from Delaware Public Media notes that the median price across the state is $380,333, up 3.02% from the previous year. Meanwhile, localized data for the city of Delaware shows the median reached $419,954 in early 2025, a 2.8% increase year-over-year, though the pace of growth appears to be moderating. 

Are Home Prices Expected to Rise Further?

Yes—but expect moderation. Price growth is ongoing, yet the rate is slowing as inventory incrementally improves.

• Rising prices—across different sources—indicate that demand remains robust, especially in key areas like the coast, suburbs, and transit corridors.

• However, longer days on market and slight upticks in inventory indicate small shifts toward increased buyer leverage. In some urban and less competitive zones, homes are no longer moving instantly.

• With mortgage rates entrenched in the 6–7% range, buyer affordability will remain strained, though the narrative has shifted from overheated bidding wars to cautious, calculated offers.

Overall, while Delaware’s housing market remains buyer-cautious but seller-favored, price appreciation is expected to continue—but likely at a more moderate pace than seen during the pandemic boom.

What This Means for Buyers & Sellers

Buyers:

• Prepare for continued—but less aggressive—price increases.

• Strengthen your offer with mortgage pre-approval and prompt responses.

• Explore niche markets or new construction, which may offer relative value.

• Consider longer-term affordability if mortgage rates remain elevated.

Sellers:

• Current pricing is still advantageous—but timing matters.

• Well-priced, well-marketed homes in desirable neighborhoods are still selling quickly.

• If inventory begins to rise substantially, pricing and presentation will become even more critical.

Final Thoughts

In 2025, Delaware’s housing market continues to appreciate, offering both opportunity and caution for buyers and sellers alike. Average and median prices remain elevated, fueled by tight inventory and sustained demand. While price growth persists, indicators suggest a softening path ahead—inventory is thawing, homes are staying listed longer in some pockets, and affordability pressures are rising amidst high borrowing costs.

For buyers, that means patience and preparation are key. For sellers, it means strategic timing and pricing will yield the best outcomes. The direction remains upward—but with a more tempered climb than in previous years.