Salisbury MD Real Estate Q2 2023 Sales Report

Q2 2023 Housing Statistics                 

For the period of April 1 through June 30 in Wicomico County, there were 307 settlements on single-family housing units, down 19% from this time last year. The median sales price was$270,000, up 6% over the same period.

Foreclosure and short-sale properties accounted for 4% of single-family home sales in the second quarter of 2023. This was up from 3% during the same period in 2022. *

Takeaways for Salisbury MD Area Home Buyers

The focus for many of today’s homebuyers in the Salisbury MD real estate market is on interest rates. The other side of the affordability equation is record-high home prices. As discussed in the Q1 Housing Report, record low housing supply is largely a result of mortgage rates more than doubling since early 2022.

Fed Chairman Jay Powell has yet to “let off the gas” as inflation remains above their target goal of 2%. The result is mortgage rates over 6%, higher than many economists were predicting for mid-2023. Last week’s positive Consumer Price Index Report suggests Fed rate hikes may be nearing an end. Rate cuts may come to fruition in the next 2-3 quarters if target inflation numbers are achieved.

While Federal Reserve rates and mortgage rates are not the same, they do tend to move in tandem. Any significant reduction in mortgage rates over time would bring some relief to area home buyers and open additional inventory. Home prices would stabilize as well under this scenario, but a sustained environment of prices falling more than the low single digits is unlikely.

Takeaways for Salisbury MD Area Home Sellers

High home prices and strong buyer demand have many Wicomico County home sellers celebrating, at least to a degree. Current market conditions are a paradox, with increases in multiple offers and more price reductions happening at the same time. Strangely enough, it’s at all price points. There are three basic rules to follow for a successful home sale–

1. Price Your Home Correctly
2. Utilize A Strong Marketing Plan
3. Don’t Confuse Rule #2 with Rule #1

With Q2 home sales running even with the second quarter of 2019 and 2020, they are a far cry from the glory days of 2021. Area homeowners going on the market need to recognize that.

What Lies Ahead for the Wicomico County Real Estate Market?

Q2 home sales locally proved to be stronger than projected but we were spot on for the pricing metric. It’s our belief mortgage rates may have peaked, and area homeowners are adjusting to the realities of the current market. That said, Q3 should produce around 300 home sales with the median sales price stable in the 260K-270K range. Next week we’ll take a deeper dive into the market over the longer term when we publish the Mid-Year Update.

*Based on information from the Coastal Association of Realtors^® for the period 4/1/23 through 6/30/23

Information compiled by Vision Realty Group is deemed to be reliable but is not guaranteed. © BRIGHT MLS Copyright 2023