Q4 Home Sales Plunge, Prices Stabilize

Salisbury MD Real Estate Q4 2022 Sales Report

 

Q4 2022 Housing Statistics                 

For the period of October 1 through December 31 in Wicomico County there were 255 settlements on single-family housing units, down 38% from this time last year.The median sales price was $233,500, up 1% over the same period.

Foreclosure and short-sale properties accounted for 3% of single-family home sales in the fourth quarter of 2022. This was up from 2% during the same period in 2021. *

Takeaways for Salisbury MD Area Home Buyers

While Q1 of 2022 will go down as when Salisbury MD area home sales peaked, Q4 will be recorded as when home prices began declining in Wicomico County. Another potential bright spot for active homebuyers is mortgage rates have leveled off as well. Some industry insiders are predicting home loans will be down around 5% later this year.  Fewer buyers mean softer demand for home inventory. This will make sellers more likely to negotiate as well.

Takeaways for Salisbury MD Area Home Sellers

With a market shift fully entrenched (declining homes sales soon to be followed by lower home prices over a period of about 9 months), prospective sellers looking ahead to the spring market in Wicomico County would be wise to not think it’s still 2021 regarding their home’s price. However, the shift is anything but a collapse as one might see in sensationalistic headlines a.k.a. “clickbait” online. Throughout this year, days on market should creep up along with slightly higher inventory. Tight home inventory and its primary cause for 2023 was discussed in the Q3 Housing Report.

What Lies Ahead for the Wicomico County Real Estate Market?

Our Q4 home sales projection came in significantly lower than expected as the full impact of drastically higher mortgage rates became clear. The result was the lowest Q4 home sales total in Wicomico County in five years. A much slower December than expected was the primary driver. For Q1 of 2023, home sales and prices should closely resemble what we saw in Q4 of 2022 at around 250 units. Next week we’ll publish the 2022 Year in Review.

*Based on information from the Coastal Association of Realtors^® for the period 10/1/22 through 12/31/22

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