Whenever the U.S. economy is booming, there are naysayers who view it as terrible news. It’s not surprising since economists can disagree about just about anything and point to statistics that prove their point.

A recent CNBC report provides a golden example. It’s one that, if you’re inclined to think it’s time to sell your Bethany Beach, DE house anyway, would reinforce that thought. It ran under the gloomy headline “Housing is providing another in a line of troubling signs”—the signs were those “pointing to an economic downturn.”

The report elaborated on a finding that compared home sales statistics from a recent period with those that preceded coming recessions. To the analyst author (Fed economist William Emmons), the result indicated that an economic downturn is likely. Although the trend looked “much less severe” than the one that preceded the Great Recession, he thinks December of this year is a plausible month for “peak growth.”

In other words, starting in 2020, look out!

For anyone who believes Professor Emmons, it means that, for Bethany Beach, DE homeowners who are going to sell anytime in the near term, now would be a logical time to put their homes up for sale. That is, before the economy weakens—usually, a trigger for buyer’s market conditions to prevail.

Whether this (or any other) economic prognostication is to be taken seriously is anybody’s guess. But it IS true that if your own plans include selling anyway, the current optimistic mood provides ripe conditions for selling your Bethany Beach, DE house. Giving me a call to discuss is a great way to start!  Call/Text me Russell Stucki at (302) 228-7871, email me at This email address is being protected from spambots. You need JavaScript enabled to view it., visit more listings at www.beachrealestatemarket.com

 Long before well-prepared Lewes, DE homeowners arrive at the signing table, they will have been aware of the factors mortgage lenders pay attention to—foremost among which is their bill-paying history. For years, they will have avoided making late payments—or underpayments. They will have corrected erroneous negatives on their credit reports and straightened out any historical inaccuracies.

If they have read up on how home loans are originated, they will know that a second weighty factor is “amounts owed”—but that’s a term that can be easily misunderstood. It turns out to include more than the term implies.

You’d think that “amounts owed” would be a simple dollar amount. If John and Jenny Smith have credit card debt totaling $8,000 and a car loan with a remaining balance of $12,000, any Lewes, DE home loan application would trigger a credit report detailing that $20,000 owed. If their incomes made that an easily sustainable debt load, John and Jenny would probably assume that their “amount owed” wouldn’t be a problem. That could well be the case—but what the lenders are more interested in is not the $20K.

Instead, they see a percentage.

To the mortgage decision-makers, “amount owed” also includes a debt-to-credit ratio. If the sum of the credit limits on all of their credit lines totals $60,000, that ratio would be a comfortable 1:3—that is, two-thirds of the amount they could have borrowed remains untapped. But if their credit limits total something closer to the amount they actually owe, it makes adding to that debt a riskier proposition. In the most extreme case—if they had borrowed almost all of their credit cards’ limits—it would understandably create a question mark in the lenders’ minds. It would mean that high-interest rates would be attached to any home loan offers (if any offers were forthcoming).

The implications for Lewes, DE real estate borrowing is straightforward. 1) Accept credit limit raises when offered—even if you have no intention of tapping them; and 2) Keep credit accounts active by using them from time to time—but keep the balances owed modest. Observing those two simple rules will make for a debt-to-credit ratio lenders love.

Early preparation for future home ownership is certain to pay off when that future arrives. Call me whenever a question about Lewes, DE real estate matters arises—I’d love to chat! Call/Text me Russell Stucki at (302) 228-7871, email me at This email address is being protected from spambots. You need JavaScript enabled to view it., visit more listings at www.beachrealestatemarket.com

That “things break down” is a truism as old as mankind—possibly preceding the invention of language itself. You can picture a furious caveman staring at the shattered remains of the wheel he’d just invented—after the first time it broke. Sooner or later, “things fall apart.”

When area residents mull over their personal living arrangement decisions, one of the logical financial arguments for renting Dewey Beach, DE homes rather than buying is the added cost of maintenance. Dewey Beach, DE renters reason that they don’t have to worry about saving up for a rainy day (as when the garbage disposal clunks out). For renters, it’s someone else’s problem (that is, the landlord’s)—as well as his or her expense. True enough.

But looking at the wider picture, you see that the universal ‘no free lunch’ rule applies. The landlord doesn’t really pay for the new garbage disposal except in the short run. Built into every rental agreement is a monthly charge into which the maintenance expense for the home or apartment unit has already been included. The average rates that residences experience breakdowns or require normal maintenance are well known—and the monthly pro-rated amounts have been reckoned and included.

It’s true that the inconvenience (and sometimes, shock!) of having to pay for sudden appliance breakdowns is largely avoided by Dewey Beach, DE renters, who may put a great deal of value on that advantage. But Dewey Beach, DE homeowners have more than one way to minimize the financial distress of inevitable breakdowns. They can either put something away in a rainy day account for that purpose only, or they can sign up for any of a number of home service plans.

The decision of whether to rent or buy your Dewey Beach, DE residence is one of the most highly personal choices there is—and one that can change from year to year. The best Dewey Beach, DE real estate decisions are made after taking all the trade-offs into account—which is one way I help my clients. Call me for a no-obligation conversation about your current situation—and Dewey Beach, DE’s many current alternatives! Call/Text me Russell Stucki at (302) 228-7871, email me at This email address is being protected from spambots. You need JavaScript enabled to view it., visit more listings at www.beachrealestatemarket.com