Milton Realtor gives presentation on market future

The area in and around Milton has become a hub of development activity, both in residential building and in infrastructure.

At its Sept. 9 meeting, Milton Town Council heard a holistic perspective on what that development will mean for the town going forward, in addition to a variety of other topics, including the state of Sussex County’s real estate business and the effect of Sussex County reassessment on property values. 

Leading the presentation was Realtor Nitan Soni of The Northrup Group; Soni’s group primarily deals with the Milton area.

Soni said the real estate market in Sussex County is in what could be deemed a seller’s market, meaning Realtors have one to four months’ worth of inventory on hand, but the landscape is trending into a balanced market, about four to six months’ worth of inventory. Soni said an inventory of six months or more is what is considered a buyer’s market. Currently, he said Sussex County has 4.6 months’ worth of inventory available. 

Soni said pre-COVID, Sussex County had 2,100 homes available, with a six- to seven-month inventory. At this time, the county has 1,405 homes available, which is up from what has been available. 

Within the Milton ZIP code, Soni said there are 139 units available, but 44% of that total is new construction. Within the town proper, there are 25 units available, with 40% of that being new construction. 

Soni discussed Delaware Department of Transportation’s future plans for traffic infrastructure, including the new overpass at Route 16 and Route 1 that will be opened in 2025, roundabouts at Cave Neck and Hudson roads, a roundabout at Route 16 and Route 30 and an interchange at Route 1 and Cave Neck Road planned for 2028. 

These traffic improvements are going to be needed because the Milton area is anticipated to get more than 2,700 new homes built over the next 20 years, Soni said. Those developments include the Granary at Draper Farm – 1,350 units – and Scarlet Oaks – 163 units – in south Milton, and Milton Village, which will be outside town limits on Route 16 and is planned for 677 units.

“Here’s what’s happening: if I’m a seller, I’m being told there’s not a lot of inventory, you’re the only house in the community, why don’t you list for higher? On the buying side, there’s been a massive transformation. They’ve gone from being able to afford a $450,000 house to being able to afford a $350,000 house. Interest rates have reduced their buying power.

“So now you have a buyer sitting on the sidelines wanting to buy and sellers are in this inflated place. The gap between sellers and buyers is enormous right now. So we’re seeing an adjustment on the seller side. Price reductions are happening almost weekly at the moment. On the sale side, we are trying to match what is happening on the buy side,” Soni said.

In his opinion, Soni said it will probably take several years for the market to totally swing back into being a balanced or buyer’s market. 

Soni then went into the county’s reassessment, its first since 1974, due to be completed in fall 2024 with new property value assessments due to go out in spring 2025. Soni said the assessment is meant to be revenue neutral and is intended to bring property values up to date. He said the county’s reassessment is different from the Town of Milton’s assessment; the town has its own separate assessment that was last done in 2009. Soni said the town has put its own reassessment on hold until the county’s reassessment is complete.