Dewey Beach, DE Mortgage Rates and the ‘Normalcy Bias’ Delusion
Ask any grandparent: “is it actually true that Dewey Beach, DE mortgage rates averaged more than 18%?” They’ll tell you. It happened. And that was less than 40 years ago.
The reason to revisit such an unimaginable scenario isn’t that anyone expects Dewey Beach, DE mortgage rates to repeat that history anytime soon (or anytime, period). It’s useful to recall because the current era of incredibly low home loan rates has been going on long enough that it’s beginning to seem to be the natural order of things.
Psychologists recognize the human tendency called “normalcy bias”—the inclination to overestimate the likelihood that current circumstances will continue. That would be harmless enough, were it not for the fact that it leads otherwise rational humans to discount the possibility of change—even if a threatening change could be avoided. In the current instance, the cozy financial climate made possible by the succession of low mortgage rates could lull would-be homebuyers (especially first-timers) into missing opportunities that might not be repeated.
The risk embodied by this particular normalcy bias comes into focus when you review just how infrequently the current rate environment develops. Quasi-governmental mortgage backer Freddie Mac publishes the benchmark PMMS (Primary Mortgage Market Survey) statistics. They show that the 30-year home loan interest rate over the past two years has averaged a benign 3.8%—ending with the most recent rate (last Thursday): an extraordinary 2.88%.
Based on the past two years’ experience alone, it might be tempting to stand by to wait for even lower rates. But that would be less reasonable if the Big Picture is taken into account. When you look at the entire history since Freddie started keeping track, you find that the average rate since 1971 is 7.4%—double what has seemed so normal recently. In contrast to the actual historical norm, the past two years’ “normal” averages amount to something like a continuous succession of 50% fire-sale discounts!
The psychologists frequently discuss “normalcy bias” with another phenomenon, “analysis paralysis.” Given 2020’s deluge of nearly overwhelming, never-before-seen events, the combination of the two could certainly make understandable holding off on any major initiative (like buying and selling a home). That’s understandable—even if once-in-a-lifetime opportunities present themselves. At any rate, it’s at least a serious thought on whether this fall could be a rare opportunity for your own Dewey Beach, DE real estate initiative. If you’d like to discuss current possibilities, I hope you’ll call! 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.
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- Written by Jimmie Bachand
Market “Hiccup” Could Nudge Owners to Join Dewey Beach, DE Listings
The first words of last week’s Realtor Magazine title were reassuring to area homeowners with homes currently included in the Dewey Beach, DE listings: “Sellers Are Calling the Shots…” For most regions across the U.S., that’s become apparent as the summer wore on. Realtor.com’s Chief Economist elaborated: “Prices are rising, and housing inventory is vanishing as fast as it appears.”
The following details bore him out. The Housing Market Index hit 107.7 for the week ending September 5th—nearly eight points higher than January’s. Significantly, that’s the pre-pandemic baseline figure. Median listing prices were up 10.8% annually, comprising the fastest pace of growth in more than two years.
Homeowners mulling the prospects should they decide to add their properties to the Dewey Beach, DE listings would also have been encouraged by the shortening of U.S. Days on Market: 12 days fewer than a year ago.
Even so, the full title of the RM commentary introduced a question not seen recently: “Sellers Are Calling the Shots, But for How Much Longer?”
The note of uncertainty was due to a pair of housing indicators. For one, housing demand had “cooled slightly.” For another, inventory had “shown improvement”—but that, too, only slightly. Inventories were still below the pre-COVID-19 baseline.
The writer admitted those slight turnabouts in the indicators experts watch might not amount to much. “This could be a hiccup in weekly activity,” was one possibility. On the other hand, “they could signal a shift in market dynamics…” That could make sense, given the uncertainties of the “political, economic, and health-related” factors.
For homeowners who’ve been on the fence about whether now is the time to join the Dewey Beach, DE listings, those future uncertainties could be reason enough—especially if the description of the U.S. market is on target: “…homes are sitting on the market for much less time, despite notably higher price tags.”
The national trends are informative—but not nearly as relevant as what we are experiencing locally. For a no-obligation, pinpointed rundown of results being registered by homes comparable to your own, I hope you’ll give me a call! 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.
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- Written by Jimmie Bachand
Some Dewey Beach, DE Homeowners Use Pause to Improve Properties
One pandemic side-effect affecting Dewey Beach, DE residential properties got Wall Street’s attention last week. The second-quarter sales numbers were scheduled for release, and the home improvement industry was expecting strong results. Sure enough, come Tuesday, Home Depot weighed in with what MarketWatch hailed as “stellar business performance”—domestic sales growth of 25%.
The following morning, Lowe’s announced “very strong” second-quarter results. They weren’t kidding. With “sales for the home improvement business increasing 35.1%,” modesty would have been inappropriate.
In fact, the big-box giants’ record-breaking flood of commerce reflects the circumstances many Dewey Beach, DE homeowners have been dealing with themselves. Because of the pandemic-spawned disruptions to normal spending patterns (Lowes’ calls that the “wallet share shift”), many newly-housebound residents have turned their attention onto the homes they’ve been spending so much time in. Suddenly, what the industry terms “core repair and maintenance activities” have been getting a lot of attention—and “wallet share.”
The Bank of America speculated on three reasons for the surge. There was the pent-up demand for home improvement projects that had been temporarily put on hold because of COVID-19. Next, there were a whole host of projects suddenly gaining popularity (improving newly activated home offices, building beds for home gardening, enhancing outdoor spaces, etc.). Lastly, BofA cited demand for home improvement projects “pulled forward” sooner than would normally have been the case. They didn’t explain why—but given the wholesale abandonment of many summer vacation and entertainment plans, it probably made sense for many Dewey Beach, DE residents to use the lull to tackle projects sooner rather than later.
Realtor.com seized the moment to recommend DIY projects that get the most return on investment when it comes time to sell. Kitchen cabinets, front doors, backyard decks, basements, storage areas, and “small things” (like leaking faucets and missing light fixtures) all qualified as investment-worthy targets for repair or improvement—as did the broader category of curb appeal.
For homeowners who’ve hesitated to make a move, they are likely to find the market more welcoming than expected. Call me for a comprehensive, no-obligation report on how comparable Dewey Beach, DE properties are performing right now! 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.
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- Written by Jimmie Bachand
Helping Dewey Beach, DE Homeowners Battle Invisible Foes
They’re yet to become a major presence in the mainstream of housing technology, but that could be in for a change. Increasingly, advances in “clean” technology—innovations aimed at sanitizing household living spaces—seem likely to become commonplace in the coming years.
Along with many other accommodations spawned by the coronavirus pandemic, Dewey Beach, DE homeowners have grown much more conscious of the presence of germs of all kinds on household surfaces. That’s sent many on a mission to eradicate them as much as practical—a frustrating campaign, since the targets are, for all practical purposes, invisible.
Last week, CNBC reported on a number of technological developments that innovative-minded Dewey Beach, DE contractors and Dewey Beach, DE do-it-yourselfers can already find on the market. Some of the examples profiled:
· Antimicrobial door handles. Some of these are advertised as “keeping your door 99.9% cleaner” than unprotected surfaces, they feature special coatings that stop bacterial growth (viruses are not affected).
· Touchless faucets. Widely available, like those now found in public restrooms, these solve the “shared surface” problem via motion sensors. Not only are they convenient—they’re smart, techy, and, as one manufacturer points out, “they’re cool!”
· LED lighting-air circulators. These ceiling-mounted fixtures employ antimicrobial lights to scrub air as it’s circulated in high-humidity environments, like bathrooms.
· Scientists have developed virus-killing sprays for frequently touched surfaces. One (“MAP-1”) can be sprayed on elevator buttons and handrails to provide 90 days of “significant” protection against bacteria and viruses like COVID-19. For the moment, none is yet available in Dewey Beach, DE.
One of the few positive developments to come from the pandemic is a wider appreciation of everyday hygienic practices—now starting to find more and more residential applications.
Keeping tabs on the constantly changing landscape affecting Dewey Beach, DE real estate matters is part of my job. On all your questions and concerns, I’m happy to serve as your local expert— call anytime! 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.
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- Written by Jimmie Bachand
