Salisbury MD Real Estate 2023 Year in Review

Salisbury MD Area Home Sales in 2023

There were 1023 home sales in Wicomico County in 2023, down 19% from 2022. The median sales price was $256,000, up 2.4% over the same period.* This was the lowest number of homes sold in Wicomico County since 2014. Home prices set a record, however.

 Area home sales are down 34% since the end of 2021.             

The average time on market for properties sold in the Salisbury MD real estate market last year was 1.3 months. Foreclosures and short sale properties accounted for 4% of residential sales in 2023, up from 3% in 2022.

Salisbury MD Area Home Buyers in 2023

Mortgage rates began the year in the mid-6% range (where they stand at the time of this writing) By October, they were nearing the 8% mark, putting a huge dent in Salisbury MD area home sales. Home inventory remained near record lows. We went into detail on the inventory issue in the Q4 Housing Report. A shortage of homes for sale was also a result of high interest rates pushing prices up throughout the year.  Price increases were much more moderate than what we saw in 2020 and 2021.

Salisbury MD Area Home Sellers in 2023

High mortgage rates in 2023 meant many area homeowners who wanted to move decided to stay put. Those who were casually considering an extra bedroom, larger yard, change of scenery, etc. simply were not willing to trade in a sub 3% mortgage for one 2x-3x that as noted above. Homeowners in the Salisbury MD area who did decide to move benefited from historic prices and a less chaotic market yet still sold in a favorable time frame of about 5 weeks on average. Home sales that took significantly longer typically happened after one or more price reductions when the seller learned that this was no longer 2021.

What Can the Wicomico County Housing Market Expect in 2024?

For 2024, we believe home prices in the Salisbury MD area will rise around 5% and home sales increase approximately 15%. If correct, market conditions will resemble what we saw in 2019 by January 1. Factors we’ll be monitoring include-

Fed Meetings

We have the dates circled on our calendar. Some Fed watchers are counting on up to six rate cuts this year. We have a more conservative take, predicting 3-4 rate cuts with the first being after the June FOMC meeting. Unknown to most of the public, mortgage rates have slowly trended lower since reaching a peak in October. Should the Fed cut its Fund’s Rate multiple times in 2024 as expected, mortgage rates may be in the 5’s by year’s end.

The Possibility of a Recession

The lingering effects of inflation and a softening labor market are indicators that a mild recession may be on the horizon, likely in the second half of the year. Should this come to pass, Fed rate cuts are a near certainty.

Instability in the Midde East

The war between Israel and Hamas/Hezbollah could easily expand to surrounding areas. American involvement is increasing as well. Widespread military action in the region could disrupt oil production and distribution, causing price spikes in the oil market. This scenario would have significant ripple effects throughout the U.S. economy.

*Based on information from the Coastal Association of Realtors^® for the period 1/1/23 through 12/31/23

Information compiled by Vision Realty Group is deemed to be reliable but is not guaranteed. © BRIGHT MLS Copyright 2024